McDonald's (MCD) Beats the Street

10/22/2009 1:10 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Now that’s the kind of quarter investors own McDonald’s Corp (NYSE: MCD) for.

Earnings for the third quarter, reported before the market open on October 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 October 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 October 22, 2009, I’m keeping my target price at $72 a share but extending the schedule from March 2010 to September 2010. On October 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.

Related Articles on STOCKS

Keyword Image
Seasonal Trading in Oil
16 hours ago

Oil companies typically come into favor in mid-December and remain so until late April or early May ...