McDonald’s Stock Price Rose 2.70% on Upbeat Q3 ’23 Revenues

The McDonald's Corp (NYSE: MCD) stock price rose 2.70% after releasing its third-quarter financial results, which were better than expected. The multinational fast-food chain achieved a remarkable 8.8% increase in global comparable sales, reflecting strong performance across all segments.

In the U.S., McDonald’s recorded an 8.1% increase in comparable sales. The company’s International Operated Markets segment experienced an 8.3% growth in comparable sales. The International Developmental Licensed Markets segment showed exceptional growth, with a 10.5% increase in comparable sales.

The company’s consolidated revenues surged by 14%, showcasing McDonald’s ability to drive revenue growth. In constant currencies, the increase was a robust 11%, underscoring the strength of the company’s operations.

McDonald’s achieved an 11% increase in systemwide sales, demonstrating its capacity to attract and serve customers. In constant currencies, the growth remained substantial at 10%. The company’s consolidated operating income displayed impressive growth, with a 16% increase. In constant currencies, the growth was a commendable 13%. 

It is noteworthy that this performance includes $26 million in pre-tax charges, primarily associated with restructuring costs related to our efforts to modernise our ways of working, a program known as “Accelerating the Organization.”

The firm’s diluted earnings per share reached $3.17, an 18% increase. In constant currencies, the growth was a substantial 15%. The positive trend in earnings per share reflects the firm’s commitment to delivering value to its shareholders and investors.

As a testament to McDonald’s robust financial position and commitment to shareholders, the company declared a 10% increase in its quarterly cash dividend. The dividend has been raised to $1.67 per share, emphasising its dedication to rewarding its shareholders.

The impressive financial results underscore the company's ability to deliver strong performance, drive growth, and adapt to modern business practices. 

Chris Kempczinski, McDonald's President and CEO, said: “With global Systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader. The macroeconomic environment is unfolding in line with our expectations for the year, and we continue to deliver convenience and value for our customers. Thanks to the entire McDonald's System's outstanding execution of Accelerating the Arches, we remain confident in our future and the strategic direction of our business.”

McDonald’s (MCD) stock price. 

The McDonald’s stock price rose 2.70% to trade at $262.66 from Friday’s closing price of $255.76.