McDonald's Reports Third Quarter 2014 Results

OAK BROOK, Ill., Oct. 21, 2014/PRNewswire/ -- McDonald's Corporation today announced results for the third quarter ended September 30, 2014, reflecting lower revenues, operating income and earnings per share.

Third quarter results included:

• Global comparable sales decrease of 3.3%, reflecting negative guest traffic in all major segments and the impact of the previously-disclosed supplier issue in certain markets in APMEA
• Consolidated revenues decrease of 5% (4% in constant currencies), partly due to the impact of the supplier issue
• Consolidated operating income decrease of 14% (14% in constant currencies), approximately half due to the impact of the supplier issue, and the remainder largely due to soft operating performance in the U.S. and certain markets in Europe
• Effective tax rate of 44.4%, primarily due to an increase in tax reserves related to certain foreign tax matters
• Diluted earnings per share of $1.09, a decrease of 28% (28% in constant currencies). The following items, which total $0.42 per share, negatively impacted diluted earnings per share by 28% (28% in constant currencies) for the quarter:
• $0.26 per share due to an increase in tax reserves related to certain foreign tax matters
• $0.15 per share due to the estimated impact of the supplier issue resulting from lost sales and profitability
• $0.01 per share due to the estimated impact of temporary store closures in Russia and Ukraine
• Excluding the impact of these items, earnings per share for the quarter would have been relatively flat compared to last year. This supplemental information is provided to help investors understand the impact of recent events on the Company's results.
• Returned $4.6 billion year-to-date September to shareholders through dividends and share repurchases, in connection with our $18-$20 billion, 3-year cash return target. Full report.