McDonald’s Beats Q3 Expectations, Shares Surge

McDonald’s says its third-quarter earnings jumped 23 percent as it reported its first monthly sales improvement in the U.S.in two years.

Burger bar behemoth McDonalds (NYSE:MCD) saw shares advance 7% to US$109.40 in after hours trade as the group posted earnings and revenue that beat estimates. The stock has climbed 5.5% in the past month…

Morningstar analyst R.J. Hottovy said he was most impressed by the return to USA growth. The company has made a number of moves, including offering all-day breakfast, paring down the menu, and allowing regional markets to develop their own products and placing greater emphasis on the quality and freshness of ingredients.

Comparable sales for the worldwide Lead Markets segment increased 4.6% for the third quarter led by strong performance in Australia, the United Kingdom and Canada and positive results in Germany. Emphasis on value and breakfast during the quarter contributed to China’s sales recovery.

But, total revenues for the quarter dropped to $6.62 billion from $6.99 billion in the prior year.

Excluding items the company earned $1.40 per share. Global sales at established restaurants were expected to rise 1.9 percent while those in the US were forecast to drop 0.2 percent, according to a Consensus Metrix estimate.

Following the report, McDonald’s stock almost 8 percent.

Chief Executive Steve Easterbrook said in a news release that he expects the momentum to continue, with same-store sales expected to be up in all regions in the current quarter.