McDonald’s (NYSE:MCD) on Monday reported quarterly earnings that topped analysts’ estimates, helped by promotions that drove U.S. customers to return to its restaurants.
The fast-food giant reported fiscal third-quarter net income of $1.76 billion, or $2.35 per share, up from $1.61 billion, or $2.11 per share, a year earlier.
Excluding gains from the sale of its shares of McDonald’s Japan and other items, the company earned $2.22 cents per share, topping the $1.90 per share expected by analysts.
Net sales dropped 2% to $5.42 billion, beating expectations of $5.4 billion.
The company’s global same-store sales fell 2.2% in the quarter, dragged down by slower recovery of its international markets. But the United States reported same-stores sales growth of 4.6%, fueled by a strong September that included its popular promotion with rapper Travis Scott and the launch of its limited-time spicy McNuggets.
The resilience of the McDonald’s system was on display during the third quarter as the competitive strength of our business and the 3 D’s – Digital, Delivery and Drive Thru – led to significant global comparable sales recovery,” said McDonald’s Chief Financial Officer Kevin Ozan.
“Our franchisees and restaurant teams around the world remain focused on running great restaurants and continuing to provide a safe environment for customers to enjoy our great tasting food.”
McDonald’s said that it expects to deal with restrictions in various markets as long the coronavirus pandemic continues. New restrictions, like mandatory dining room closures, have begun hitting some of its key international markets, like France, Germany, the United Kingdom and Canada in recent weeks.
The company will increase its quarterly cash dividend by 3% to $1.29 per share.
MCD shares dipped three cents to $216.56.