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Shares of the company rose about 2% to $261 in premarket trading
as it also raised its quarterly cash dividend by 10%.
The burger giant has been able to keep its meals relatively more
affordable following the industry-wide hike in prices last year,
helping counter the trend of inflation-hit consumers opting to
eat more at home and a decline in footfall.
Global comparable sales at McDonald's jumped 8.8% in the quarter
ended Sept. 30, while analysts on average expected a 7.36% rise,
according to LSEG data.
Drawing on its history of menu enhancements, McDonald's launched
the Cheesy Jalapeno Bacon quarter pounder in July and brought
back the fan-favorite Spicy Chicken McNuggets to menus in
September.
Both items likely drove solid sales growth in the third quarter,
UBS analysts had noted.
While overall dining traffic fell in all three months of the
quarter, McDonald's saw a 7.3% jump in July, data from Placer.ai
showed.
Footfall strength at the company tapered off in the next two
months - recording declines of 1.1% and 3.7% - but remained
ahead of the broader industry trends.
Comparable sales in the United States climbed 8.1% in the
quarter, beating estimates of a 7.4% increase, thanks also to
higher average spending at stores.
Meanwhile, same-store sales in McDonald's international operated
markets increased 8.3%, edging past expectations for 8.03%
growth.
Total quarterly revenue increased 14% to $6.69 billion, beating
estimates of $6.58 billion.
Net income rose to $2.32 billion, or $3.17 per share, from $1.98
billion, or $2.68 per share, a year earlier. On an adjusted
basis, McDonald's posted a per-share profit of $3.19, handily
beating estimates of $3.00.
(Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj
Kalluvila)
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