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McDonald's sales beat estimates as turnaround gathers pace
[LOS ANGELES] McDonald's Corp's turnaround gained momentum in the latest quarter as sales growth at established restaurants beat analysts' estimates, sending the company's shares up almost 4 per cent in premarket trading on Friday.
Same-restaurant sales in its US restaurants rose a better-than-expected 1.3 per cent, helped by demand for its all-day breakfast, the "McPick 2 for US$2" promotion and the introduction of Chicken McNuggets without artificial preservatives.
Analysts polled by research firm Consensus Metrix had expected a gain of 1.2 per cent in the United States.
McDonald's, under Chief Executive Steve Easterbrook, has introduced all-day breakfasts, simplified sprawling menus and improved service to turn around its business amid intense competition from Burger King, Dunkin' Donuts and smaller upstart chains.
McDonald's said global sales at restaurants open at least 13 months rose 3.5 per cent in the third quarter ended Sept 30, handily beating the 1.5 per cent gain expected on average by analysts.
The world's largest fast-food chain reported net income of US$1.28 billion, or US$1.50 per share, compared with US$1.31 billion, or US$1.40 per share, a year earlier.
The company had 87.1 million fewer shares outstanding in the quarter, compared with the year-earlier period.
Excluding items, the company earned US$1.62 per share, beating the average analyst estimate of US$1.48, according to Thomson Reuters I/B/E/S.
Total revenue fell almost 3 per cent to US$6.42 billion - down for the ninth straight quarter - but beat the average analyst estimate of US$6.28 billion.