McDonald's Sees Net Income Climb

McDonald's (NYSE: MCD) announced its results for the third quarter on October 21, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
McDonald's managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. The company reported EPS of $1.45/share versus the $1.43/share estimate and revenues of $7.17 billion versus the $7.01 billion estimate. EPS rose 12.4% while revenue climbed 13.7% from the same period last year.
Last quarter marked the third in a row of rising net income. McDonald's' revenue has grown during each of the past four quarters on a year-over-year basis.

Income:
For the year, McDonald's reported net income of $5.10/share. The company trumped analyst projections of $5.08 by 0.4%. 

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
"McDonald's third quarter results reflect the ongoing strength of our customer-focused Plan to Win. We are executing the right strategies to grow the business for the long term while delivering consistently strong quarterly results," said McDonald's Chief Executive Officer Jim Skinner. "The investments we are making to optimize our menu, modernize the restaurant experience and broaden McDonald's accessibility with ongoing convenience and value platforms are driving profitable market share growth - a clear indication that our strategy is working."

Industry:
With price/earnings growth of 1.2%, McDonald's' industry, retail-restaurants, is expanding. With its recently reported EPS, the company is trailing the industry's estimate average by 47.9%.

What to Do Next:
That's it -- now you have all the facts to help you decide whether to buy, sell or hang onto your McDonald's shares. And don't forget to check in with us before next earnings season for a full preview of the company's next release.

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