OK, so we already knew that McDonald's (NYSE:MCD) was going to report a strong quarter. The fast food giant gave a sneak peek last week that all but guaranteed success. But let's drive through the Golden Arches once again and enjoy this Happy Meal for shareholders.
Third-quarter net income at McDonald's rose 15% to $843.3 million, or $0.68 per share. Revenues increased 10% to $5.88 billion. Operating income grew 12% to $1.30 billion. Same-store sales increased 5.8% (that's 41 consecutive months of comps growth, mind you). Operating margin was strong, at 22.2% versus 21.8% last year this time.
Not to rain on the parade, but I've noted in the past that for some strange reason, McDonald's doesn't include its balance sheet or cash flow statement in its earnings press release. (Although there's a lot to like about McDonald's these days, skipping financial statements in earnings releases isn't a habit we consider very Foolish.) Although the company's 8-K filing with the SEC includes some more granular information in its exhibits, such as detailed sales data, business outlook, and risk factors, it still doesn't include those two important sheets of information, which the company will be required to disclose when it files its quarterly report on Form 10-Q.
From the added highlights we can glean that McDonald's is doing very well overseas. Excluding currency effects, sales in Europe jumped 8%, and another highlight was Latin America, where sales increased 20%. The company broke down its sales success in the U.S. to its breakfast menu -- including coffee, and new products like wraps -- and said strong sales in Europe were particularly boosted by strong comps in France, Germany, and Russia.
Seeing how McDonald's stock has risen 23% in the last year probably gives some investors reason to wonder if they should get out while the getting's good. But McDonald's seems to be firing on all cylinders as it continues to improve its business and compete against rivals like Burger King (NYSE:BKC) and Wendy's (NYSE:WEN). Furthermore, it's sweetened the deal by offering a meaty dividend, buying back shares, and cashing out its interest in Chipotle Mexican Grill (NYSE:CMG).
For a stalwart, old-school company, McDonald's seems to be managing itself quite well these days -- in its conference call, management said McDonald's strategy for growth hinges not on only being bigger, but also on being better. So far, McDonald's shareholders have had little to complain about, and given the signs, it's not hard to imagine that good things are still to come.
For more appetizing Mickey D's articles, see the following Foolish content:
- Just last week, McDonald's spread the word about this quarter.
- McDonald's rewards are fattening.
- The fast food giant has been hot for a while.
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Alyce Lomax does not own shares of any of the companies mentioned.
