A.M. Buzzers: McDonald’s and Yum! Brands Decline, Google Finds Support
Shares of McDonald’s (NYSE:MCD) fell more than 3 percent in morning trading. The company reported that net income declined 3.1 percent to $1.46 billion ($1.43 per share) for the third quarter, compared to $1.51 billion ($1.45 per share) a year earlier. Revenue also edged 0.2 percent lower to $7.15 billion. “While our sales momentum and current financial results reflect today’s challenging conditions, we continue to see significant long-term opportunities for brand McDonald’s and remain confident in the underlying strength of our business model,” said McDonald’s CEO Don Thompson. Competitor Yum! Brands (NYSE:YUM) shares also declined.
Chipotle Mexican Grill (NYSE:CMG) shares plunged over 13 percent in early trading today. The company announced that third quarter earnings increased 19.6 percent to $72.3 million, compared to $60.4 million ($1.90 per share) a year earlier. However, the results fell short of the mean analyst estimate of $2.33 per share. The drought seen over the summer is already impacting input costs for the company.
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After closing down 8 percent on Thursday, shares of Google (NASDAQ:GOOG) are finding support. The search giant tripped over a cliff when it surprised investors with an early release of earnings — a mistake Google is blaming on third-party publisher R.R. Donnelley & Sons (NASDAQ:RRD). Net income came in at $2.18 billion for the third quarter, compared to $3.18 billion a year earlier. Larry Page, chief executive officer, apologized for the early leak. In regards to the quarterly results, he said, “I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices.” Google shares edged slightly higher in late trading.
Microsoft (NASDAQ:MSFT) shares fell 2 percent this morning. Net income dropped 22.2 percent to $4.47 billion (53 cents per share), compared to $5.74 billion (68 cents per share) a year earlier. Revenue also fell 7.9 percent to $16.01 billion. “The launch of Windows eight is the beginning of a new era at Microsoft,” said Steve Ballmer, chief executive officer at Microsoft. “Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”
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