With the help of well-received promotions during the third quarter, including the Snack Wrap, 50 cent cheeseburger on September 18, and Extra Value Meal, McDonald’s (MCD) saw increased traffic to its restaurants, giving the stock a modest boost in early Wednesday’s trading.
“We increased global Systemwide sales by 6% and grew comp sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment,” said CEO Chris Kempczinski. “We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors.”
The hamburger chain reported a 3.6% gain in global comparable sales during the quarter, and up 2.4% in the U.S., both of which were slightly better-than-expected, driving a 3% gain in revenue to $7.08B, though $10M less than anticipated.
But while revenue improved, $39M in restructuring charges and $52M tied to transaction costs and non-cash impairment charges associated with the sale of the South Korea business and acquisition in Israel curbed the company’s profits. This resulted in earnings of $3.22 per share, down a penny from a year ago and $0.11 less than expected.
Shares are up less than 1% ahead of Wednesday’s opening bell, giving a modest boost to peers Wendy’s (WEN), Restaurant Brands (QSR), Shake Shack (SHAK), and Yum! Brands (YUM).