McDonald’s earnings: Beat across the board, raises dividend

McDonald’s beat on both the top and bottom lines.Justin Sullivan/Getty Images

McDonald’s shares are gaining around Tuesday morning, up about 2%, after the burger giant posted third-quarter earnings that beat Wall Street estimates.

The fast-food chain on Tuesday posted quarterly earnings of $2.10 per share, beating the $1.99 that was expected by analysts, according to Bloomberg data. Revenue fell 6.6% to $5.37 billion, but that was higher than the $5.32 billion expected by Wall Street.

Meanwhile, McDonald said same store sales increased 2.4% in the US, driven by growth in average check resulting from both product mix shifts and menu price increases, matching analysts’ forecasts. Global comparable sales grew 4.2% versus a year ago, beating the 3.6% growth that was anticipated.

“We remain confident that our strategy will drive long-term, profitable growth,” CEO Steve Easterbrook said in a press release.

“In addition to achieving 13 consecutive quarters of positive global comparable sales, we have made substantial progress modernizing restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day.”

The company said it returned $1.7 billion to shareholders in the third quarter through share repurchases and dividends, and will increase its quarterly dividend by 15% to $1.16 per share beginning in the fourth quarter.

McDonald’s was down 1.68% this year through Monday.

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