McDonald’s earnings top estimates, fueled by U.S. sales recovery

Earnings

McDonalds restaurant in Londons Oxford Street. Restaurants are only allowed to open for takeaway orders during the Englands second lockdown.

Dave Rushen | LightRocket | Getty Images

McDonald’s is expected to report its third-quarter earnings on Monday before the bell.

Here’s what Wall Street is expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.90 expected
  • Revenue: $5.4 billion expected

In October, the fast-food giant said its U.S. same-store sales turned positive, rising 4.6% in the third quarter. A promotion with rapper Travis Scott helped boost sales in September, fueling the chain’s highest monthly same-store sales growth in nearly a decade.

But international markets’ are taking longer to bounce back after being hit harder by pandemic restrictions, dragging down McDonald’s total same-store sales. The company reported global same-store sales declines of 2.2% for the quarter.

And international markets will likely continue to weigh on McDonald’s business. England, Germany and France, some of the company’s largest markets, are re-imposing lockdowns as Covid-19 cases and deaths soar in those countries.

Following the announcement of its third-quarter results, McDonald’s is scheduled to hold a virtual investor meeting.

Shares of the company, which has a market value of $167 billion, have risen 9% so far this year.

This is breaking news. Please check back for updates.

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