McDonald’s (MCD) on Wednesday reported third quarter earnings results that topped Wall Street’s expectations, boosted by strong sales growth across the board as customers were enticed by a range of new menu items, even amid a resurgence of COVID-19 cases worldwide.
Here’s the Golden Arches reported, compared to Wall Street estimates , according to a Bloomberg consensus estimate:
Revenue: $6.20 billion versus $6.03 billion expected
Adj. earnings per share (EPS): $2.76 (excluding special items) versus $2.46 expected
U.S. same-store sales: 9.6% versus 8.16% expected
Global same-store sales: 12.7% versus 9.04% expected
“We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders,” McDonald’s President and Chief Executive Officer, Chris Kempczinski said in a statement.
The restaurant chain’s new growth strategy including the three ‘D’s:’ digital, delivery and drive-thru, which has boosted sales during the pandemic. The Golden Arches also cited customers shelling out on larger orders, even as soaring inflation puts upward pressure on prices.
Wedbush’s Nick Seytan, who has an “outperform” rating on shares of McDonald’s and a price target of $270″, favored McDonald’s in a recent note. Despite headwinds from food costs and labor, Setyan also expects “continued top line growth to result in EPS upside.”
Meanwhile, Jon Tower of Wells Fargo, who has an “overweight” rating on shares of McDonald’s and recently changed its price target from $269.00 to $276.00, noted loyalty and celebrity meals are among tops items on the menu for third-quarter earnings results.
MyMcDonald’s Rewards, which launched on July 8th this past summer, now has over 22 million active app users and over 12 million enrolled members of of July according to Tower.
On digital engagement, he noted “We believe commentary will be encouraging and continue to confirm this as a key pillar of a multi-year share-gain thesis.”
The earnings report comes as the fast food giant makes headway with a “small operations test” of the McPlant in the U.S. beginning November 3rd and overseas in the U.K and Ireland, in addition to multiple sustainability efforts including a makeover of its iconic Happy Meal toys.
Shares of McDonald’s are up 10 percent year-to-date.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at firstname.lastname@example.org.
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