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(Sharecast News) - Shares in McDonald's jumped on Wednesday after the fast-food giant reported a 9% increase in third-quarter profits despite falling sales in its domestic market, where customer traffic continued to decline.
Reported net income came in at $2.49bn for the three months to 30 September, up from $2.28bn a year earlier, while adjusted earnings per share rose 11% to $3.57, well ahead of the $3.38 consensus forecast.
However, revenues grew just 1% to $7.16bn, missing the $7.28bn estimate, as global comparable sales growth slowed to 1.5% from 3.6% recorded in the same quarter last year.
In the US, comparable sales declined 0.2%, compared with growth of 2.4% a year earlier, as falling customer numbers were only partly offset by higher average spending per transaction. However, McDonald's said US trading improved as the quarter progressed following efforts to strengthen its value offering.
Internationally, comparable sales grew 1.4% in operated markets, led by Germany and Australia, although France remained weak. Sales in developmental licensed markets rose 4.2%, supported by Japan, despite a decline in China.
Global systemwide sales, which include those from both company-owned and franchised locations, increased 4% to more than $38bn.
Chief executive Chris Kempczinski said: "McDonald's delivered another quarter of global growth, with solid performance across much of our international business. In the US, we're encouraged by improvement as the quarter progressed following our intervention on value."
He added: "We're focused on building from here, strengthening the business today and investing in the next chapter of growth."
The company also announced a 4% increase in its quarterly dividend to $1.93 per share.
McDonald's shares were up 5.1% at $276.54 by 1607 GMT.