- Shares of McDonald's dipped as much as 4% on Tuesday after the the fast-food chain reported third-quarter sales and profit that fell below Wall Street estimates.
- The company posted $1.61 billion in profit for the quarter, falling below analysts forecasts of $1.69 billion as sales in the US slumped.
- US same-store sales growth slowed to 4.8% during the period, down from an increase of 5.7% in the second quarter.
- Watch McDonald's trade live.
McDonald's shares traded as much as 3.3% lower on Tuesday after the company posted third-quarter profit and revenue that fell short of analyst estimates.
Here are the key numbers from the company's earnings report:
- Revenue: $5.43 billion, compared to $5.48 billion expected by analysts
- Earnings per share: $2.11, versus $2.21 estimated by analysts
- Net income: $1.61 billion, versus $1.69 billion forecasted by analysts
The fast-food chain also reported global same-store sales growth of 5.9%, outpacing expectations of 5.7%, according to Bloomberg.
While international sales rose, McDonalds struggled to grow its business in the US. Domestic same-store sales climbed 4.8%, slowing significantly from last quarter's 5.7% growth.
The company said national and local promotions as well as price increases for some menu items fueled the growth in US same-store sales.
"Results for the quarter and nine months in constant currencies reflected stronger operating performance primarily due to an increase in sales-driven franchised margin dollars, partly offset by lower gains on sales of restaurant businesses, mostly in the U.S.," the company said in its earnings report.
McDonald's returned $2.4 billion to shareholders during the period through stock buybacks and dividends. The company also approved an 8% hike in its quarterly dividend to $1.25 per share starting in the third quarter of 2019.
The fast-food space has been shaken-up in recent months with the explosion in popularity of plant-based meat alternatives from companies like Beyond Meat and Impossible Foods.
Burger King - one of McDonald's biggest competitors - has seen success with its US rollout of the plant-based Impossible Whopper this year. McDonald's said in September that it plans to team up with Beyond Meat to test a veggie burger at select locations.
Shares of McDonald's are up 14% year-to-date.
