McDonald’s shares slipped in premarket trading Tuesday after it reported higher third-quarter revenue but lower profit than last year, as the fast-food giant’s same-store sales fell more than expected.
McDonald’s shares fell 2% in premarket trading Tuesday after the fast-food giant reported a mixed third-quarter performance. While revenue grew to $6.87 billion, exceeding last year’s $6.69 billion and analysts’ expectations of $6.81 billion, net income dropped to $2.26 billion from $2.32 billion last year, missing projections of $2.30 billion. Adjusted net income of $2.32 billion narrowly surpassed expectations after removing nearly $70 million in charges.
McDonald’s also faced a 1.5% decline in same-store sales—greater than the 0.6% drop analysts expected—reflecting sluggish international sales despite modest growth in the U.S. The company’s $5 Meal Deal promotion, extended through December, was credited with boosting U.S. sales and bringing back lower-income customers impacted by higher prices earlier in the year.
Separately, the Centers for Disease Control and Prevention (CDC) linked an E. coli outbreak to McDonald’s Quarter Pounders, though the company assured consumers its beef patties were not responsible. Testing identified slivered onions as the likely source, and McDonald’s plans to reintroduce the Quarter Pounders without onions across affected locations in a dozen states.
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