Decline in sales and profits, decline in global comp sales, no mention of the impact of E. coli

McDonald's Corporation (NYSE:MCD) shares are trading lower after the company reported third-quarter adjusted earnings per share of $3.23, beating analysts' consensus estimate of $3.20.

Quarterly revenue of $6.90 billion beat analysts' consensus estimate of $6.82 billion. Sales increased 3% year over year (2% at constant exchange rates).

Company-owned and operated restaurant revenue increased 4%, while franchise restaurant revenue increased 1%.

Also read: Donald Trump would have to work at McDonald's in Pennsylvania for 14.5 years to reach the president's salary

However, global comparable sales fell 1.5% in the quarter, with the U.S. up 0.3%, international operating markets down 2.1% and international development license markets down 3.5%.

The company has been in the headlines frequently over the past two weeks Donald Trump's Visit to one of his restaurants and an E.coli outbreak affecting locations in the western United States

McDonald's did not mention any impact from the E. coli outbreak in its forecasts.

In the US, the company's comparable sales increased slightly due to higher average checks, despite a slight decline in guest numbers, supported by effective marketing and digital growth.

However, the internationally operated markets faced challenges with negative sales in several markets, particularly France and the UK

Meanwhile, international development licensing markets were impacted by the ongoing conflict in the Middle East and poor sales in China, which overshadowed positive sales in Latin America.

Systemwide loyalty member sales reached over $28 billion in the trailing 12 months and nearly $8 billion in the quarter.

In September, the company announced a 6% increase in its quarterly cash dividend to $1.77 per share.

Price promotion: MCD shares are trading 2.46% lower at $289.50 in premarket trading on Tuesday at last check.

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This article, “McDonald's Q3 Earnings: Revenue And Profit Beat, Global Comp Sales Dip, No Mention Of E.coli Impact” originally appeared on Benzinga.com

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