McDonald’s Stock In Focus After Q3 Earnings Beat, Same-Store Sales Miss: Retail Confidence Edges Higher

McDonald’s Corp. ($MCD) shares were up nearly 1% on Tuesday morning, paring some early gains, as third-quarter results revealed mixed performance, unsettling some investors. 

Revenue rose 3% to $6.87 billion, above the $6.82 billion consensus, and earnings per share beat by $0.02 at $3.23.

But same-store sales disappointed, slipping 1.5% — missing expectations for a 0.6% drop. 

The U.S. was a standout with slight growth of 0.3%, but international markets, including France, China, the U.K., and the Middle East, struggled.

CEO Chris Kempczinski expressed McDonald’s commitment to affordability amid cautious consumer spending and reaffirmed the company’s commitment to its “Accelerating the Arches” strategy to drive global growth. 

However, sentiment on Stocktwits, which was at ‘neutral’ before the bell, inched up into ‘bullish’ levels at the open, although there was some strong division among retail investors. 

Some expressed long-term optimism, while others flagged potential risks, including foot traffic problems even before the recent E. coli outbreak tied to quarter-pounder burgers, which led to 49 cases across 10 states.

In a post-earnings conference call, McDonald’s said it had taken swift action, removing slivered onions from its supply chain and emphasizing its commitment to food safety. 

Despite recent setbacks, the company plans to continue expanding its $5 meal deal through December and aims to introduce the McCrispy in 70 markets by year-end. 

McDonald’s also acknowledged that its overall performance in 2024 has fallen short of expectations and noted intensified competition in value offerings.

Shares of MCD are up only 0.1% year-to-date, significantly underperforming the S&P 500’s 22.1% gain.

For updates and corrections, email newsroom@stocktwits.com

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