NEW YORK (CNN/Money) - Shares of McDonald's Corp. rose Tuesday after the world's largest fast-food chain announced it planned to scale back its store-opening activities in 2003 to focus more on growing sales at existing stores.

McDonald's (MCD: up $1.05 to $19.35, Research, Estimates) shares rose nearly 8 percent in late-morning trading, but were still far from their 52-week high of $30.72.

The Oak Brook, Ill.-based chain also reported a third-quarter profit of $486 million, or 38 cents a share, compared with earnings of $493 million, or 38 cents a share excluding special items, a year ago. Analysts surveyed by earnings tracker First Call had a consensus earnings-per-share forecast of 38 cents for the period.

That consensus forecast was scaled back from 42 cents a share, however, in September, after McDonald's warned that weaker-than-expected sales in the United States and Europe would hurt its earnings for the quarter and full-year 2002.

In the third quarter, McDonald's revenue rose to $4 billion from $3.9 billion, which was slightly below First Call's forecast of $4.1 billion in the period. Total sales, including sales at restaurants owned by franchisees, rose to $10.9 billion from $10.6 billion a year earlier.

The company reaffirmed that it expected 2002 earnings of $1.43 a share or better excluding unusual items, in line with Wall Street's reduced estimates.

But investors were likely most encouraged by the company's announcement that it planned to open only 600 new stores in 2003, cutting its spending on new stores by about $500 million. By comparison, McDonald's will likely open about 1,050 new stores in 2002.

"This is a fairly dramatic reduction. They're cutting it down to 600 restaurants next year, whereas I was thinking they would cut it down to 800," CIBC World Markets analyst John Glass told Reuters.

McDonald's said that the money it saves by opening fewer stores will mostly be poured back into existing restaurants to help them improve their sales. About $100 million will be spent to build new structures for existing restaurants.