McDonald’s Corporation (MCD) recently reported third-quarter 2009 results that topped the Zacks Consensus Estimate, driven by effective cost control and rise in comparable sales across all regions. McDonald’s quarterly earnings came in at $1.15 per share, up 10% from $1.05 reported in the prior-year quarter, and surpassed the Zacks Consensus Estimate of $1.11 per share.
The strong U.S. dollar continues to moderate results, trimming the earnings by 5 cents a share. Excluding foreign currency translation and gains, earnings increased 14% to $1.20 per share.
Revenue for the quarter declined 4% to $6,046.7 million, but increased 2% in constant currencies. Revenue from company-operated restaurants declined 7% to $4,093.6 million, whereas revenue from franchise-operated restaurants increased by 5% to $1,953.1 million. Total operating income rose 6% to $1,932.8 million, but jumped 11% in constant currencies.
Despite a sinking global economy, McDonald’s continues to grow same-store sales while maintaining healthy margins by expanding market share. Global same-store sales rose 3.8% with the U.S. sales up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%. New menu products, including Angus Third Pounders and McCafe premium coffee line-up, boosted U.S. comps.
Recently, the company announced a 10% increase in its quarterly dividend, bringing the total quarterly dividend to 55 cents per share. McDonald’s has returned $1.3 billion to shareholders through dividends and share repurchases during the quarter.
McDonald’s and other fast-food chains, like Burger King Holdings (BKC), Yum! Brands (YUM) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.
Read the full analyst report on “MCD”
Read the full analyst report on “BKC”
Read the full analyst report on “YUM”
Read the full analyst report on “CMG”
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