McDonald's (MCD) Tops Q3 EPS by 1c; China, Japan Still Challenging Markets

October 21, 2013 7:59 AM EDT
(Updated - October 21, 2013 8:24 AM EDT)

McDonald's Corp. (NYSE: MCD) reported Q3 EPS of $1.52, $0.01 better than the analyst estimate of $1.51. Revenue for the quarter came in at $7.32 billion versus the consensus estimate of $7.34 billion.

Third Quarter results included:

* Global comparable sales increase of 0.9 percent. Growth in the same period last year was 1.9 percent.
* Consolidated revenues increase of 2 percent (2 percent in constant currencies)
* U.S. comps rose 0.7 percent and operating income was up 5 percent. Comps were up 1.2 percent in the sale period last year.
* In Europe, comps improved 0.2 percent with an 11 percent increase in operating income. Comps rose 1.8 percent in Q312.
* Comparable sales in Asia/Pacific, Middle East and Africa (APMEA) declined 1.4 percent for the quarter. Third quarter operating income declined 12 percent (down 4 percent in constant currencies) reflecting weakness in China, Japan and Australia due, in part, to the ongoing challenging environment. Comps improved 1.4 percent last year during the same time frame.

We are focused on delivering what our customers want most in any environment - great-tasting food served in a contemporary, inviting atmosphere at the speed and convenience that is in tune with today's busy lifestyles, commented CEO Don Thompson. For the quarter, our results reflect McDonald's ability to grow amid the broad-based challenges of the current environment by focusing on those areas of the business within our control.

Looking ahead, the Company expects the dynamics of the current environment to persist. For the fourth quarter, the Company expects global comparable sales performance to be in-line with recent quarterly trends while restaurant margin percentages are expected to decline at a level relatively similar to first quarter results. Global comparable sales for the month of October are expected to be relatively flat.

For earnings history and earnings-related data on McDonald's Corp. (MCD) click here.


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