- The valuation of the food chain’s shares witnessed a rise by 3.6% in premarket trading.
- McDonald’s will be increasing its quarterly cash dividend by 3% up to USD 1.29 per share.
According to reliable sources, U.S.-based leading fast food company, McDonald’s Corporation has reportedly surpassed analysts’ quarterly revenue estimations.
The fast food giant has reportedly garnered a net income of USD 1.76 billion in the third fiscal quarter, rising from a net revenue worth USD 1.61 billion from the previous year. Moreover, the valuation of the company’s shares witnessed a rise by 3.6% during premarket trading.
In this context, industry analysts claimed that McDonald’s has registered a per share earnings worth USD 2.22, exceeding the expected valuation of USD 1.90 per share. Additionally, the company accounted for a total revenue of USD 5.42 billion, exceeding the revenue predictions by USD 0.02 billion.
Although the company’s global same-store sales plunged by 2.2% due to slow recovery from the COVID-19 pandemic, the sales in the U.S. witnessed a 4.6% growth, on account of its strategic collaboration with rap artist Travis Scott along with the launch of its flagship spicy McNuggets.
McDonald’s was reported mentioning in a statement that it is expecting capital expenditures worth USD 1.6 billion in 2020, of which around USD 850 million will be invested towards upgrading around 900 restaurants in the U.S.
Sources close to the matter stated that the company is planning to open around 950 new restaurant, among which 270 branches will be established in the U.S., as well as in other internationally operated markets including the United Kingdom and France. Furthermore, McDonald’s is also planning to establish around 400 new outlets in China this year.
Reportedly, McDonald’s will be increasing its quarterly cash dividend by 3% up to USD 1.29 per share. It looks like the company will hold an investor update after its quarterly conference call.
Source credits: https://www.cnbc.com/2020/11/09/mcdonalds-mcd-q3-2020-earnings.html