(Reuters) – McDonald’s Corp (MCD.N) beat estimates for quarterly global same-store sales as strong demand in international markets made up for slowing growth in the fiercely-competitive U.S. fast-food industry, sending its shares up nearly 3 percent.
The logo of a McDonald’s restaurant is seen in Bordeaux, France, June 18, 2018. Picture taken June 18, 2018. REUTERS/Regis Duvignau
Restaurant chains in the United States have been fighting for a bigger share of an over-crowded restaurant market by offering dollar menus, discounts on beverages and limited-time menu items as well as freshly prepared meals to diners.
Global comparable store sales at McDonald’s increased 4.2 percent, topping the average analyst estimate of a 3.72 percent rise.
Sales at McDonald’s U.S. restaurants open for at least 13 months rose 2.4 percent in the third quarter ended Sept. 30, the slowest in six quarters. Analysts on average expected 2.55 percent growth, according to Refinitiv estimates.
Net income fell to $1.64 billion, or $2.10 per share, in the quarter from $1.88 billion, or $2.32 per share, a year earlier.
Excluding items, the company earned $2.10 per share beating the $1.99 analysts expectation.
Revenue in the quarter revenue fell 7 percent to $5.37 billion, but also beat expectations of $5.32 billion.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty