McDonald's Beats Q3 Expectations, Shares Surge

Shares of

surged over 6 percent in pre-market trading after the company reported better-than-expected results for the third quarter on Thursday. The Oak Brook, Illinois-based company posted quarterly net income of $1.31 billion, or $1.40 per share, compared to $1.07 billion, or $1.09 per share, in the year-ago period. Its revenue declined to $6.62 billion from $6.99 billion. However, analysts were expecting earnings of $1.28 per share on revenue of $6.41 billion. The average estimate among 77 Estimize users was for earnings of $1.28 per share and revenue of $6.45 billion. Global same-store sales rose 4 percent, while U.S. comparable sales increased 0.9 percent. McDonald's President and Chief Executive Officer Steve Easterbrook said, "Third quarter marked an important step in the Company's global turnaround - the reorganization of our business from a geographically focused structure to business segments that combine markets with similar characteristics and opportunities for growth. As we begin fourth quarter, comparable sales are expected to be positive in all segments. While still in the early stages, we believe our turnaround plan is starting to generate the change needed to reposition McDonald's as a modern, progressive burger company." McDonald's shares gained 6.79 percent to $109.50 in pre-market trading.