McDonald's Q3 Profit Rises 11 Percent On Strong Global Sales

October 22, 2008 3:19 p.m. EST

Oakbrook,IL (AHN) - McDonald's Corp announced Wednesday third quarter profit rose 11 percent driven by a global same-store sales increase of 7.1 percent.

The fast-food chain posted third quarter earnings of $1.19 billion or $1.05 a share, compared to $1.07 billion or 89 cents a share in the same period a year ago. The result topped analyst estimates for 97 cents a share, according to FactSet Research.

Revenue totaled $6.27 billion, up 6 percent from last year and above estimates for $6.22 billion.

Same-store sales growth in the U.S. lagged the global trend, but still rose 4.3 percent on the quarter.

"As we enter the final quarter of the year, October sales trends remain strong, and I am optimistic about McDonald's outlook," said CEO Jim Skinner, according to MarketWatch.

McDonald's said margins in the U.S. dipped slightly but grew overseas and on a whole. Product prices are roughly 3 to 5 percent higher than last year, helping offset rising input costs.

The company has also discussed making adjustments to its Dollar Menu in order to offset the inflated cost of beef and said a decision will be made soon.

McDonald's benefited from the recent slowdown in U.S. consumer spending as third quarter revenue in the U.S. grew at its strongest pace this year with consumers turning to its cheaper food menu.

Shares of McDonald's are trading slightly higher on Wednesday at $55.45 a share.