McDonald’s Corp (NYSE: MCD) stock traded higher on Tuesday after the company reported across-the-board earnings and revenue beats in the third quarter. Analysts say McDonald’s latest quarter is yet another sign that its Experience of the Future technology initiative has the company on the right track for long-term investors.
McDonald’s reported third-quarter adjusted earnings per share of $2.10 on revenue of $5.37 billion. Both numbers exceeded consensus analyst expectations of $1.99 and $5.32 billion, respectively. Revenue was down 7 percent compared to a year ago.
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U.S. same-store sales growth for the quarter was 2.4 percent, down from 2.6 percent in the second quarter. Global same-store sales growth was 4.2 percent, up from 4 percent last quarter. Analysts had been expecting just 3.6 percent growth this quarter. McDonald’s has now reported 13 consecutive quarters of comparable sales growth.
McDonald’s says its Foundational markets segment generated a particularly strong 6 percent same-store sales growth, led by strength in Japan.
In recent quarters, McDonald’s has been focusing on revamping its menu to focus on value-oriented offerings. In addition, it has been investing heavily in its Experience of the Future initiative, which includes adding mobile and kiosk ordering and delivery via Uber Eats. McDonald’s has said it is investing $2.4 billion in restaurant renovating 4,000 restaurants this year and opening 1,000 new locations.
CEO Steve Easterbrook’s efforts to streamline McDonald’s business and integrate technology have generated positive results so far.
“We have made substantial progress modernising restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day,” Easterbrook says in a statement.
Investing.com analyst Haris Anwar says McDonald’s offers restaurant investors a rare combination of a 2.7 percent dividend and long-term sales growth potential.
“There are many reasons one may not like the largest fast food operators in the world, but when it comes to paying dividends, McDonald’s has a tremendous track record,” Anwar says. “With its 4 percent pullback this year, McDonald’s offers good value investing opportunity, and I see a huge upside potential in the stock value over the next 12 months.”
MCD stock traded more than 3 percent higher following the earnings beat.
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McDonald’s Corp (MCD) Stock Higher After Impressive Earnings Beat originally appeared on usnews.com