McDonald’s shares jump after more strong sales (despite killer clown craze)
It looks like all McDonald's needed was a bit of wisdom from Watford man Steve Easterbrook. The fast food giant has just posted its fifth straight quarter of rising sales.
The figures
Global sales rose 3.5 per cent in the three months to the end of September, it said it an update today, pushed up by a 1.3 per cent rise in US sales (thanks, apparently, to the All Day Breakfast, among other things).
However, revenues fell three per cent to $6.4bn (£5.2bn), while operating income rose five per cent to $1.14bn, and earnings per share rose seven per cent to $1.50.
That was enough for investors: shares rose 2.45 per cent to $113.27 in mid-morning trading in New York.
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Why it's interesting
It's been a tough few years for Maccer D's as it battled with the pesky trend for healthier food (not to mention the killer clown craze, which puts mascot Ronald McDonald in an uncertain position).
But then it put Easterbrook in charge – and following the implementation of his turnaround plan, which includes such ground-breaking strategies as simplifying the fast food giant's menu, things have begun to look up.
Today he attributed its success to its All Day Breakfast, something called the McPick 2 platform and its decision to ditch artificial preservatives from Chicken McNuggets – but added that what he called "industry softness" is still a problem.
Still, back in July McDonald's announced plans to create more than 5,000 jobs in the UK by the end of 2017 – which suggests he remains reasonably confident.
What McDonald's said
We are putting the customer at the center of everything we do and are directing our resources towards those innovations and investments that will strengthen our ability to deliver a better McDonald's experience over time. Our customers, system, and shareholders are best served when we direct our focus and energy towards executing against these critical customer expectations.
Looking ahead, we are focused on growing global comparable sales and serving more customers while being mindful of the near-term challenges in several markets. We remain committed to driving long-term, profitable results while pursuing our goal of being recognised by our customers as a modern, progressive burger company.
In short
The company's turnaround continues apace – although the sector continues to struggle.