McDonald’s stock up after same-store sales rise

McDonald’s stock up after same-store sales rise

Increase of 1.3 percent assuaged investor worries of a bigger slowdown.

McDonald’s Corp. stock rose 4 percent in early morning trading on Friday after the company reported that its U.S. same-store sales rose 1.3 percent in the quarter ended Sept. 30.

The result beat investor expectations, and for now at least assuaged fears among many that the company was in for a bigger slowdown, as various restaurant same-store sales indexes had been particularly weak in recent months. McDonald’s own stock had fallen 16 percent since May due to those concerns.

Global same-store sales rose 3.5 percent, and McDonald’s reported positive comparable sales in all segments — the fifth straight quarter the chain has been able to say that.

CEO Steve Easterbrook said in a statement that the results “are a testament to the progress we are making to satisfy the needs of today’s dynamic customers.”

Revenue in the quarter fell 3 percent to $6.4 billion from $6.6 billion, largely due to the company’s refranchising efforts, yet that result beat investor expectations. Net income fell 3 percent to $1.28 billion, or $1.50 per share, from $1.31 billion, or $1.40.

Contact Jonathan Maze at [email protected]
Follow him on Twitter at @jonathanmaze

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