McDonald's New Promotions Give The Chain A Sales Boost In Q3

McDonald's New Promotions Give The Chain A Sales Boost In Q3

McDonald's Corporation (NYSE:MCD) 3Q17 earnings were released before opening bell this morning.

McDonald's reported better-than-expected sales at its established restaurants during the third quarter, as its fresh promotions drew more customers in for a deal.

Revenue was $5.8 billion, versus an estimate of $5.7 billion.

Consolidated revenue fell 10 percent year-over-year due to the impact of its strategic refranchising initiative.

McDonald's third-quarter sales and profits matched analysts' expectations. In terms of the breakdown, US comparable sales increased 4.1%, International Lead segment increased 5.7%, High Growth segment comparable sales increased 6.2%, and Foundational markets comparable sales rose 10.2%.

Sales at US restaurants open at least 13 months rose 4.1 percent, while global comps were up 6 percent during the period. The company generated sales with a McPick 2 value promotion, $1 nationwide beverage promotion, and a semi-customizable Signature Crafted line of burgers and chicken sandwiches. International Lead comparable sales grew 5.7% year over year as the United Kingdom and Canada showed continued momentum and all other markets returned positive results. Its High Growth segment, including China, saw 6.2-percent same-store sales growth.

The fast food restaurant operator also refranchised its China and Hong Kong businesses during the third quarter, hitting its target of refranchising 4,000 restaurants over a year earlier than management had expected.

Still, investors pay close attention to sales in the U.S., McDonald's biggest market.

McDonald's also announced an increase of 7 percent to its quarterly dividend (now $1.01 per share) beginning in the fourth quarter.

McDonald's returned $2.9 billion to shareholders through dividends and share buybacks.

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