McDonald's Corp. (MCD) shares traded firmly higher Thursday after the world's biggest restaurant chain posted better-than-expected third quarter earnings thanks to surging U.S. sales powered in part by menu prices hikes for its signature Big Mac.
McDonald's said diluted earnings for the three months ending in September were pegged at $2.68 per share, down 6.3% from the same period last year but firmly ahead of the Street consensus forecast of $2.58 per share.
Group revenues, McDonald's said, fell 5.3% to $5.87 billion, again topping analysts' estimates of a $5.685 billion tally, with the overall tally blunted by the ongoing strength of the U.S. dollar.
The world's biggest restaurant said same-store sales rose 9.5% for the period on a global basis, firmly ahead of Street forecasts of 5.8%, while U.S. sales jumped 6.1% as diners looked for value-focused meals in the face of the fastest domestic inflation in at least four decades.
McDonald's, however, was still able to pass on price hikes, including an estimated 4.5% increase for it Big Mac, that helped offset the increase in underly input costs.
"Our third quarter 2022 performance demonstrated broad-based business momentum as global comparable sales increased nearly 10%. I remain confident in our Accelerating the Arches strategy as our teams around the world continue to execute at a high level," said CEO Chris Kempczinski. "As the macroeconomic landscape continues to evolve and uncertainties persist, we are operating from a position of competitive strength."
McDonald's shares were marked 3.44% higher in early Thursday trading following the earnings release to change hands at $265.56 each, a move that would trim the stock's year-to-date decline to around 1.1%.
