McDonald's profit jumps 11%

McDonald's Corp. posted an 11% rise in third-quarter profit, helped by strong sales worldwide, the fast-food giant said Wednesday.

Before the start of trading, McDonald's said it earned $1.19 billion, or $1.05 a share, up from $1.07 billion, or 89 cents a share, in the year-earlier period.

Revenue rose 6% to $6.27 billion, with global same-store sales -- those at outlets open at least a year -- up 7.1%.

The average estimate of analysts polled by FactSet Research had been for the company to earn 97 cents a share on revenue of $6.22 billion.

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

In the U.S., McDonald's same-store sales rose 4.7% for the quarter as the economic malaise continued. It has often been a beneficiary of the downturn as new menu items and expanded hours lure consumers to "trade down" from higher-priced food options. The company said McDonald's U.S. posted its highest sales increase of 2008 in the quarter.

Overseas, the company continues to aggressively expand in markets like China.

Shares of McDonald's have not been immune to the market turmoil. The stock closed at $55.13 on Tuesday, down 3%. That is up from its Oct. 10 low of $45.79 but still off the high-water mark of $67 in August.

Last month, McDonald's said that it would raise its quarterly dividend 33% to 50 cents a share, a smaller percentage increase than the previous two years but still the sixth time in a row it has boosted the dividend by a double-digit percentage.

Source: MarketWatch