McDonald''s profits jump 17% in third-quarter
McDonald''s Corporation outdid Wall Street estimates by forecasting a 17% increase in third-quarter earnings per share (EPS), and said September same-store sales rose 7.7%, boosted by strong breakfast and new Snack Wraps sales.
The company's shares rose to as much as $42.44, their highest level in almost seven years.
Third quarter profit of 68 cents a share are forecasted, including 1 cent of expense relating to impairment and other charges primarily in Asia/Pacific, Middle East and Africa. Foreign currency conversion is expected to have a positive impact of 1 cent a share.
According to Thomson First Call, analysts expected the company to earn 63 cents a share.
System wide sales for the company's restaurants around the globe were up 9.8% for the month. For the third quarter, system wide sales rose 8.4%.
Since 2003 the company's stock has more than tripled when the company implemented a turnaround program dubbed "Plan to Win," which it says has driven 40 straight months of increasing worldwide sales and double-digit increases in EPS for the past three years.
"Our Plan to Win is powering sustainable momentum in our business with every area of the world once again posting strong comparable sales growth," Chief Executive Jim Skinner said. "We are increasing relevance, enhancing menu variety and improving customer convenience."