McDonald's Corp MCD reported third-quarter FY23 sales growth of 14% year-on-year to $6.692 billion, beating the analyst consensus estimate of $6.577 billion.
Global comparable sales rose 8.8%, reflecting strong growth across each segment.
U.S. Comparable sales rose 8.1%, benefiting from strong average check growth driven by strategic menu price increases.
Sales by company-operated restaurants increased 20.3% Y/Y to $2.56 billion, while sales from franchised restaurants rose 10.2% to $4.05 billion.
Digital Systemwide sales in the top six markets were nearly $9 billion for the quarter, representing almost 40% of their Systemwide sales.
Total operating costs and expenses increased 12.1% to $3.48 billion. Operating income for the quarter rose 16% to $3.208 billion, with an operating margin of 47.9%, up from 47.06% year-over-year.
Adjusted EPS of $3.19 beat the consensus estimate of $3.00.
On October 4, the company said the Board of Directors increased the quarterly cash dividend by 10% to $1.67 per share, payable on December 15, 2023 to shareholders of record at the close of business on December 1, 2023.
"With global Systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader," said President and CEO Chris Kempczinski.
Outlook: MCD sees FY23 operating margin of 46%; Capital expenditure of $2.2 billion - $2.4 billion.
Globally, the company expects to open about 1,900 restaurants in FY23.
Price Action: MCD shares are trading higher by 3.10% at $263.88 in premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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