Mubasher: McDonald’s reported weaker-than-expected earnings in the third quarter of 2019.
The fast food giant’s net income declined by 2% to $1.61 billion, or $2.11 of earnings per share (EPS) in Q3-19, compared with $1.64 billion.
This came weaker than expected EPS of $2.21, according to analysts polled by Refinitiv.
Net sales climbed by 1% to $5.43 billion in the period between July and September, compared with $5.37 billion a year ago, but they missed expectations of $5.5 billion.
In the US, same-store sales rose by 4.8% during the quarter, below Wall Street’s estimate of 5.2%, driven by national and local promotions, menu price increases as well as tech-focused upgrades to stores. Nevertheless, traffic to US stores continued to decline.
“Our third quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth,” McDonald's CEO Steve Easterbrook said in a statement.