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McD's 3Q profit rises 12%
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October 21, 1999: 12:20 p.m. ET
Per-share earnings jump 15%, beating Street by a penny
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NEW YORK (CNNfn) - McDonald's continued to serve up healthy profits in the third quarter due to a strong performance in the United States and success in most of its international businesses.
The fast-food chain posted net income of $540.9 million, or 39 cents a diluted share. The results exceeded analysts' per-share consensus estimate of 38 cents, according to forecast-tracking firm First Call, and came in well ahead of the $482.2 million, or 34 cents a share, the hamburger titan reported in the same period last year.
Revenue totaled $9.89 billion, up nearly 7-1/2 percent from $9.20 billion a year earlier.
On an operating basis, income grew 11 percent in the United States, 12 percent in Europe, 9 percent in the Asia-Pacific region but only 1 percent in Latin America.
"Latin America's results were adversely affected by the devaluation and difficult economic conditions in Brazil. But we are seeing improvement in Brazil and are optimistic that we will continue to improve going forward," Vice Chairman Jim Cantalupo said.
Economic difficulties in Russia also affected results for Europe. Excluding Russia, operating income in Europe increased 15 percent during the quarter.
For the nine-months, net income rose 22 percent to $1.46 billion, or $1.04 a diluted share, from $1.20 billion, or 85 cents a share, a year earlier. The 1998 results include an after-tax $110 million special charge for a home-office productivity initiative.
The Oak Brook, Ill.-based company said it still is on track to add 1,750 new restaurants in 1999, about 90 percent of them outside the United States.
McDonald's (MCD) shares were down 1/8 to 44 in late morning trade in New York. 
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McDonald's
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