McDonald’s beats the Street
Posted
Oct 22 2009, 12:43 PM
by
Jim Jubak
Rating:
Now that’s the kind of quarter investors own McDonald’s (MCD) for.
Earnings for the third quarter, reported before the market open on Oct. 22, climbed to $1.15 a share from $1.05 in the third quarter of 2008. That was above Wall Street expectations of $1.11 a share. (This puts McDonald’s among the 80% of so of Standard & Poor’s 500 stocks that have beat Wall Street estimates so far this quarter. For more on that, see this Oct. 20 post.)
Revenue fell 3.5% to $6.05 billion. That was below analyst projections of $6.1 billion. But on a constant currency basis, revenue was up 2% from the third quarter of 2008.
Same store sales increased by 3.8% overall and they were up in every region where McDonald’s does business. And by more than Wall Street had projected, according to Bloomberg. Same store sales grew by 2.5% in the United States (analysts had expected 2.2% growth), by 5.8% in Europe (5.4% expected), and by 2.2% in the Asia/Pacific, Middle East, and Africa regions (1.1% expected).
As of Oct. 22, 2009, I’m keeping my target price at $72 a share but extending the schedule from March 2010 to September 2010. On Oct. 22, the stock paid a dividend yield of 3.7%.
Full disclosure: Jim Jubak does not own or control shares of any company mentioned in this post.
