McDonald’s Corporation (NYSE:MCD) announced a rise in its worldwide same-restaurant sales for the latest quarter and reported that the trend would persist in the fourth quarter. The results show that turnaround efforts from CEO Steve Easterbrook are finally paying off.
The company has simplified its menu, enhanced service by increasing salaries, and is working on offering healthier food under the supervision of Easterbrook, who took charge of the burger chain in March. The measures seems to be working for the company.
McDonald’s said that worldwide comparable sales jumped 4 percent in the latest quarter, marking the first surge in more than a year, helped by strong sales of breakfast items and value meals in China, where the company struggled to boost revenue following a safety scandal last year in July.
Comparatively, analysts surveyed by research firm Consensus Metrix were looking for a much modest surge of 1.9 percent.
Stronger sales for new menu products including breakfast items like the Egg McMuffin, and the Premium Buttermilk Crispy Chicken Deluxe sandwich drove the comparable sales in the United States into positive zone for the first time in 2 years.
The company reported earnings of $1.31 billion, or $1.40 a share for the third quarter, well above $1.07 billion, or $1.09 a share in the same period last year. On adjusted basis, McDonald’s posted earnings of $1.40 a share.
Revenue came in at $6.62 billion for the latest quarter ended Sept. 30, down 5.3 percent from the same period last year. Analysts polled by Thomson Reuters I/B/E/S were looking for earnings of $1.27 a share on $6.41 billion in revenue.
McDonald’s shares hit a new 52-week high of $110.88 following better-than-expected quarterly results. MCD shares are up +7.22 in the current trading session on volume of 10.20 million.
