McDonald's boosted by drive-thru and digital orders amid coronavirus rebound

McDonald’s Corp. rode a surge in drive-thru traffic and digital orders amid the COVID-19 pandemic to stronger-than-expected third-quarter results.

The Chicago-based fast-food chain reported sales at U.S. stores open at least 12 months climbed 4.6% from a year ago, helping power a $1.76 billion profit. Adjusted earnings were $2.22 per share, outpacing the $1.90 that analysts surveyed by Refinitiv were expecting.

Ticker	Security	Last	Change	Change %
MCD	MCDONALD'S CORP.	286.69	-4.20	-1.44%

“The resilience of the McDonald's system was on display during the third quarter as the competitive strength of our business and the 3 D's – Digital, Delivery and Drive Thru – led to significant global comparable sales recovery," CFO Kevin Ozan said in a statement.

Global comparable sales improved sequentially, but declined 2.2% during the three months through September. Operations at some overseas restaurants remained limited due to government restrictions put in place to slow the spread of COVID-19. France, Germany and the United Kingdom recently announced new lockdowns.

Total revenue fell 2% year-over-year to $5.42 billion, eclipsing the $5.4 billion that analysts were expecting. Sales plunged 31% during the previous quarter as restaurant closures around the world snarled business.

The company raised its quarterly dividend by 4 cents to $1.29 per share.

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McDonald's shares were up 9.59% this year through Friday, outperforming the S&P 500's 8.63% gain.