News

McDonald's comp sales up 4.2 percent, consolidated revenues down 5 percent

October 23, 2018

McDonald's Corporation Q3 results, for the period ending Sept. 30, show comp sales rose 4.2 percent, the 13th straight quarter of positive movement for the chain, according to a news release. However, costs associated with its strategic refranchising initiative pulled consolidated revenues down 5 percent in constant currencies. 

Other third quarter highlights include:

• 5 percent systemwide sales increase. 
• 20 percent drop in consolidated operating income resulting from the prior year's reported gain of $850 million for China and Hong Kong sale. 
• 4 percent increase in consolidated operating income without that prior year sale. 
• 7 percent drop in diluted earnings per share of $2.10 (due to prior year sale)
• 22 percent increase in diluted EPS excluding prior year gain, restructuring and impairment charges.
• $1.7 billlion returned to shareholders through share repurchases and dividends. 
• 15 percent increase in quarterly dividend to $1.16 per share.
• 2.4 percent U.S. Q3 comp sales growth.
• 5.4 percent International lead segment Q3 comp sales growth

High-growth segment sales grew 4.6 percent, led by strong performance in Italy and the Netherlands, and positive results across most of the segment. In foundational markets, Q3 comp sales grew 6 percent, with positive sales performance in Japan and across all geographic regions. The segment's operating income increased 6 percent (12 percent in constant currencies), fueled by sales-driven improvements in franchised margin dollars, stated the release.

"In addition to achieving 13 consecutive quarters of positive global comparable sales, we have made substantial progress modernizing restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day," President and CEO Steve Easterbrook said in the release.