McDonald’s shares jump after earnings beat expectations and dividend raised

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McDonald’s Corp. shares jumped 6.2% in Monday premarket trading after the fast-food giant reported third-quarter earnings that beat the Street and raised its dividend. Net income totaled $1.76 billion, or $2.35 per share, up from $1.61 billion, or $2.11 per share, last year. Adjusted EPS of $2.22 beat the FactSet consensus for $1.91. Revenue of $5.42 billion was down from $5.50 billion and also ahead of the $5.40 billion FactSet consensus. Global comparable sales fell 2.2%, though the U.S. was up 4.6% for the quarter. The FactSet consensus was for a 2.6% global decline. McDonald’s says monthly comparable sales improved sequentially with September up in the low double digits. All dayparts were up with a strong dinner performance. Nearly all restaurants are open, however COVID-19 resurgences have put restrictions on operating hours and dining room capacity, particularly outside of the U.S. McDonald’s raised its quarterly dividend 3% to $1.29, payable on Dec. 15. McDonald’s shares have gained 9.6% for the year to date while the Dow Jones Industrial Average has fallen 0.8% for the period.
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