NEW YORK (Reuters) - McDonald's Corp reported better-than-expected profit on Wednesday, fueled by strong sales in the United States and abroad as consumers sought lower prices when they dine out.
Shares of the world's largest hamburger chain rose nearly 1 percent in pre-market trade.
P.F. Chang's China Bistro Inc
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
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)
