McDonald’s reported a 0.2% decline in U.S. comparable sales for the third quarter, while gains abroad lifted global comparable sales 1.5%, showing a divide between its domestic and international markets.
Net income increased to $2.49 billion, or $3.51 a share, from $2.28 billion, or $3.18 a share, a year earlier. Revenue rose 1% to $7.16 billion. Excluding restructuring charges and other items, McDonald’s earned $3.57 a share.
Adjusted earnings exceeded the $3.38-a-share estimate in an LSEG analyst survey reported by CNBC. Revenue was below the survey’s $7.29 billion estimate.
In the U.S., McDonald’s said fewer comparable guests were largely offset by higher average checks. Comparable sales measure restaurants open at least 13 months. Total U.S. systemwide sales, a broader measure, rose 1%.
Comparable sales increased 4.2% in international developmental licensed markets. McDonald’s said Japan led that gain, while China recorded a decline. Its international operated markets posted a 1.4% increase, led by Germany and Australia and partly offset by weakness in France.
McDonald’s CEO Chris Kempczinski said U.S. performance improved later in the quarter after the company acted on its value strategy. CNBC reported that McDonald’s has used discounts over the past two years to attract diners watching their spending.
