(MENAFN- AFP) McDonald's reported unexpectedly strong third-quarter results Friday, fueled by gains in overseas markets that offset sluggish growth in the US.
The fast-food giant pointed to especially strong sales in Britain and Japan, as well as positive results in Australia, Canada and Germany.
That translated into a 3.5 percent gain in comparable global sales in the quarter, much better than the 1.5 percent seen by some analysts.
The results "are a testament to the progress we are making to satisfy the needs of today's dynamic customers," said McDonald's chief executive Steve Easterbrook.
Net income for the third quarter dipped 4.4 percent to $1.3 billion. That translated into $1.50 per share, a penny above analyst expectations.
Net sales declined three percent to $6.42 billion, better than the $6.28 billion projected by analysts.
The strong performance in international restaurants follows an overhaul of McDonald's global structure undertaken by Easterbrook.
Easterbrook was tapped in January 2015 to turn around the company after a lengthy slump amid as McDonald's lost ground to other fast-food chains like Wendy's and high-end brands such as Shake Shack.
Easterbrook shifted the global organization from region-based to one structured around comparative growth potential, with countries split into groups such as "high growth" and "foundational."
Easterbrook also sold restaurants to franchisees and introduced new menu items, such as "All Day Breakfast" in the US. He has spoken of the need to transform McDonald's into a "modern, progressive burger company."
An exception to the international strength in the third quarter was China, where temporary protests against McDonald's and other US companies, such as Apple and Kentucky Fried Chicken, resulted in negative sales.
The protests were launched after an international tribunal in July ruled that China's claims to a vast swathe of the South China Sea are invalid.
Overall, McDonald's performance oveseas was "resilient," even with the stronger dollar, said Neil Saunders, chief executive of Conlumino, a research and consultancy firm.
Saunders was less enthused over McDonald's prospects in the US, writing that the "company's recovery has lost some of its initial momentum."
In the US market, comparable sales rose by 1.3 percent, slower than the 1.8 percent growth in the prior quarter. The company pointed to "continued industry softness."
Saunders agreed that the overall US restaurant sector was "remarkably soft" in the third quarter, but he said McDonald's also faces challenges as it tries to boost sales by attracting more young consumers who prefer Chipotle and other brands.
"The blunt truth is that McDonald's brand image is not one that naturally supports a more premium offering, especially in a market like the US where much work on the design and ambience of restaurants is still needed," Saunders said.
Shares rose 2.4 percent to $113.24 in early trade.
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