McDonald’s global same-store sales top analyst forecasts in third quarter

September plan to spend around $8.5 billion aims to help franchisees compete

McDonald’s global same-store sales rose 1.5% for the three months ended Sept. 30, exceeding analyst expectations for a 1.3% gain. In the U.S., comparable sales fell 0.2%, hurt by weaker traffic trends that the company said were largely offset by check growth.

The burger chain posted third-quarter net income of $2.49 billion, or $3.51 a share, compared with $2.28 billion, or $3.18 a share, in the year-earlier period. Stripping out one-time items, earnings were $3.57 a share, above the $3.38 that analysts polled by FactSet anticipated. Total revenue ticked up 1.1% to $7.16 billion but fell shy of Wall Street estimates for $7.28 billion. McDonald’s shares rose 6.15%.

Chief Executive Chris Kempczinski said McDonald’s delivered another quarter of global growth, led by solid performance across much of its international business, as continually sluggish U.S. sales weighed on results. Trends began to improve in the U.S. during the recent period, he added, following the chain’s increased focus on value.

McDonald’s has been working to win back inflation-weary customers — especially lower-income consumers, who have reined in spending over the past few years. The company has rolled out a series of deals and introduced new items such as dirty sodas and other high-margin beverages.

In June, McDonald’s introduced a new global business strategy leaning on menu upgrades, improved customer service and new store prototypes in a bid to drive sales. The company also named a new president of its U.S. business.

More recently, McDonald’s in September laid out a plan to spend around $8.5 billion to help its franchisees make investments in equipment and their operations to better compete with fast-food rivals. The company needs to capture more market share in order to increase sales, executives previously said, as customer-traffic growth in its major markets is expected to be flat in the coming years.

The McDonald’s report comes after rival Burger King said last week that its U.S. turnaround was gaining traction, with third-quarter U.S. same-store sales up 8.4%. The chain also reclaimed the No. 2 spot for U.S. burger-chain sales from Wendy’s.

McDonald’s quarterly performance was uneven: adjusted earnings and global same-store sales exceeded expectations, revenue missed the estimate, and U.S. comparable sales declined. The company continued emphasizing value offers, operational improvements and franchise investment as it sought to win back traffic in major markets.