McDonald's Stock Soars After Profit, Sales Beat Expectations

McDonald's Corp.'s stock soared 6.9% in premarket trade Thursday, after the fast-food giant beat profit and sales expectations. Earnings for the latest quarter rose to $1.31 billion, or $1.40 a share, from $1.07 billion, or $1.09 a share, compared with the FactSet earnings-per-share consensus of $1.27. Revenue fell to $6.62 billion from $6.99 billion, but came in above the FactSet consensus of $6.41 billion. Global same-store sales increased 4%, better than the FactSet consensus of 1.7% growth. U.S. sales rose 0.9%, compared with expectations of a 0.3% decline, as the introduction of a new Premium Buttermilk Crispy Chicken Deluxe sandwich and return to the classic recipe for the Egg McMuffin provided a boost. "Third quarter marked an important step in the company's global turnaround - the reorganization of our business from a geographically focused structure to business segments that combine markets with similar characteristics and opportunities for growth," said Chief Executive Steve Easterbrook. "As we begin fourth quarter, comparable sales are expected to be positive in all segments." The stock has climbed 9.4% year to date, while the Dow Jones Industrial Average has lost 3.7%.