It's been an eventful week for McDonald's. The fast-food giant just unveiled a better than expected third quarter earnings report which has prompted a surge in stock price.
Market Watch says McDonald's Corp.'s stock (MCD), +7.59% ran up $7.18, or 7%, in Thursday morning's trading session and is on pace for a record high closing. The company's strong performance in the market has lead the DOW to jump more than 300 points.
Figures from Morningstar indicate that earnings from last quarter, which ended September 30, rose to $1.31 billion, or $1.40 a share, from $1.07 billion, or $1.09 a share. The FactSet earnings-per-share consensus was $1.27. Revenue dropped from $6.99 billion from $6.62 billion, but was still better than the $6.41 billion pegged by FactSet. Global same-store sales increased 4%, also topping the FactSet mark of 1.7%. U.S. sales, which were expected to fall 0.3%, rose by 0.9%.
In the brand's official press release, CEO Steve Easterbrook commented on the promising figures.
"I am encouraged by our operating performance for the quarter, with positive comparable sales across all segments, including the U.S., as well as sales recovery in China following the prior year supplier issue. I am confident in the fundamental strength of the McDonald's System and our ability to drive initiatives that are focused on delivering the greatest benefit for our customers." He says.
The brand attributed the promising figures to a number of factors.
'The introduction of the new Premium Buttermilk Crispy Chicken Deluxe sandwich and breakfast, including a return to the classic recipe ingredients for McDonald's iconic Egg McMuffin, contributed to the segment's performance.' Says the report.
This development snaps a streak of seven quarter streak of same-store sales declines.
"While still in the early stages, we believe our turnaround plan is starting to generate the change needed to reposition McDonald's as a modern, progressive burger company." Said Easterbook in his concluding statement.
