McDonald’s Earnings: After Four Straight Increases, Investors are Selling This Data

S&P 500 (NYSE:SPY) component McDonald’s Corporation (NYSE:MCD) reported its results for the third quarter. McDonald’s franchises and operates fast food restaurants worldwide.

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McDonald’s Corporation Earnings Cheat Sheet

Results: Net income for McDonald’s Corporation fell to $1.46 billion ($1.43 per share) vs. $1.51 billion ($1.45 per share) a year earlier. This is a decline of 3.1% from the year-earlier quarter.

Revenue: Fell 0.2% to $7.15 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: McDonald’s Corporation beat the mean analyst estimate of $1.38 per share. It beat the average revenue estimate of $6.94 billion.

Quoting Management: “While our sales momentum and current financial results reflect today’s challenging conditions, we continue to see significant long-term opportunities for brand McDonald’s and remain confident in the underlying strength of our business model,” said McDonald’s Chief Executive Officer Don Thompson. “We have the right plans in place to drive long-term profitable growth along with the experience and alignment throughout the McDonald’s System to navigate the current environment.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 13.7%.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 4.5% from the year-earlier quarter.

The company beat estimates last quarter after meeting expectations in the second quarter with net income of $1.23 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.54 per share, down from $1.59 ninety days ago. For the fiscal year, the average estimate has moved down from $5.71 a share to $5.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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