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1:04 PM ยท 29 October 2024

McDonald's shares slide 3.5% as Q3 report shows larger drop in comparable sales ๐Ÿ“‰

McDonald's (MCD.US) shares are losing more than 3.5% after its Q3 results, falling to $286, diving below local lows caused by news of E.coli bacteria in burgers, in central US states. McDonald's shares have risen 10% in the past three months, and are more than 20% higher since the June minima. The company decided to raise its dividend by 6% to $1.77 per share.

  • The company reported earnings per share of $3.23 against $3.2 forecasts. Revenue came in at $6.87 billion, slightly above expectations, as it was estimated at $6.82 billion (3% y/y growth and 2% in constant currency). Comparable sales fell in Q3 quarter-on-quarter more sharply than expected, by -1.5% versus -0.67% expectations. Operating profit fell 1% y/y. 
  • In the U.S., it rose slightly by 0.3%, versus 0.19% forecast. IDL sales fell -3.5%, -1.44% expected, with an equally weak IOM market, where the decline was -2.1%, -0.87% expected. Investors fear that quarterly declines will now be even greater, indirectly through greater customer caution in the US, where one E.coli has been recognized. 

McDonald's shares (D1 interval)


Source: xStation5

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