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McDonald's 'golden arches' droop as Q3 sales fall short

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October 22, 2019

With its U.S. sales slowing down and fast food competition heating up, McDonald's turned in disappointing third-quarter financials that reined in investors this morning, in response. There was a bright spot in the Happy Meal chain's decidedly down financial report in on the international front where same-store sales grew better than anticipated by analysts. 

According to the company's financial reporting, key Q3 numbers were: 

• Global comparable sales of 5.9% demonstrated broad-based strength with the International Operated segment increase of 5.6%, the U.S. increase of 4.8%, and the International Developmental Licensed segment increase of 8.1%.
• Consolidated revenues grew $61.2 million or 1% (3% in constant currencies) to $5.43 billion, but were still short of the $5.49 billion expected. 
• Systemwide sales grew $1.3 billion or 5% (7% in constant currencies) to $26.0 billion.
• U.S. same-store sales were 4.8% though Bloomberg anticipated 5.2%. 
• International same-store sales were over expectations of 5.7% to come in at 5.9%. 
• GAAP diluted earnings per share of $2.11 was essentially flat with prior year quarter, though increased 2% in in constant currencies.

"As we work to build an even better McDonald's experience for customers by providing convenience on their terms, we continue to embrace the culture of innovation that helped launch our company over 60 years ago," said CEO Steve Easterbrook in the financial results statement. "That culture is rooted in a mission to provide delicious food, served with hospitality, to over 65 million customers who honor us with their business every day."