McDonald’s Corp. Earnings Cheat Sheet: Positive Earnings Streak

S&P 500 (NYSE:SPY) component McDonald’s Corporation (NYSE:MCD) reported its results for the third quarter. McDonald’s franchises and operates fast food restaurants worldwide.

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McDonald’s Earnings Cheat Sheet for the Third Quarter

Results: Net income for McDonald’s Corporation rose to $1.51 billion ($1.45 per share) vs. $1.39 billion ($1.29 per share) in the same quarter a year earlier. This marks a rise of 8.6% from the year earlier quarter.

Revenue: Rose 13.7% to $7.17 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MCD beat the mean analyst estimate of $1.43 per share. It beat the average revenue estimate of $7.01 billion.

Quoting Management: “McDonald’s third quarter results reflect the ongoing strength of our customer-focused Plan to Win. We are executing the right strategies to grow the business for the long term while delivering consistently strong quarterly results,” said McDonald’s Chief Executive Officer Jim Skinner. “The investments we are making to optimize our menu, modernize the restaurant experience and broaden McDonald’s accessibility with ongoing convenience and value platforms are driving profitable market share growth – a clear indication that our strategy is working.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 15% and in the first quarter, the figure rose 10.9%.

Revenue has risen the past four quarters. Revenue increased 16.1% to $6.91 billion in the second quarter. The figure rose 8.9% in the first quarter from the year earlier and climbed 4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 7 cents in the second quarter and by one cent in the first quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.28 per share to $1.27. The average estimate for the fiscal year is $5.19 per share, a rise from $5.12 ninety days ago.

Competitors to Watch: Chipotle Mexican Grill, Inc. (NYSE:CMG), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Nathan’s Famous, Inc. (NASDAQ:NATH), Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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