McDonald's, P.F. Chang's profits top view

Shares of the world's largest hamburger chain rose nearly 1 percent in pre-market trade.

P.F. Chang's China Bistro Inc also reported a quarterly profit that topped Wall Street expectations, helped by cost controls, and said it planned to close 10 underperforming restaurants.

McDonald's third-quarter net income jumped 11 percent. The company said it was seeing continued strength in the current quarter, in the midst of a financial crisis that has raised fears of a global recession.

"As we enter the final quarter of the year, October sales trends remain strong and I am optimistic about McDonald's outlook," said McDonald's Chief Executive Jim Skinner.

U.S. consumers, grappling with lower home values, job losses, a credit crunch and higher gas prices have cut back on eating out at mid-tier restaurant chains, and in many cases, have switched to lower-priced chains.

That has helped fast-food operators like McDonald's, Yum Brands Inc -- parent of Taco Bell, Pizza Hut and KFC -- and Burger King Holdings Inc , but hurt mid-tier players like P.F. Chang's, which reported lower third-quarter profit and trimmed its full-year outlook.

BIG MACS AND CHICKEN

McDonald's profit rose to $1.19 billion, or $1.05 per share, from $1.07 billion, or 89 cents per share, a year earlier. Analysts on average were expecting 98 cents per share, according to Reuters Estimates.

Total revenue rose 6 percent to $6.27 billion, helped by a 7.1 percent increase in global same-store sales.

Domestic same-store sales, or sales at restaurants open at least 13 months, rose 4.7 percent, their highest increase this year. McDonald's said the growth was helped by well-known menu items including the Big Mac as well as Southern-style chicken and lower-priced drinks.

Same-store sales rose 8.2 percent in Europe and 7.8 percent in the Asia/Pacific, Middle East and Africa segment.

P.F. Chang's, which operates the Pei Wei Asian Diner chain in addition to its namesake restaurants, said it now expects 2008 earnings of $1.34 to $1.40 per share and revenue growth of 11 percent to 12 percent.

Its prior forecast called for earnings of $1.36 to $1.42 per share on sales growth of 12 percent to 13 percent.

The Asian-themed restaurant chain said third-quarter net income fell to $3.0 million, or 12 cents per share, from $5.3 million, or 20 cents per share, a year earlier.

Excluding impairment charges for closing 10 Pei Wei restaurants, the company earned 31 cents per share, handily topping analysts' average estimate of 25 cents

McDonald's shares rose to $55.60 in premarket trade, up from their close at $55.13 on the New York Stock Exchange.

(Reporting by Martinne Geller, editing by Gerald E. McCormick, Dave Zimmerman)