Shares rise as McDonald's serves up third quarter sales boost

McDonald's served up better than expected sales in its latest quarter as the fast food giant showed signs that a turnaround plan was gaining traction.

All-day breakfasts and special offers in its US outlets helped global comparable sales rise 3.5% at the world's biggest burger chain, beating expectations of 1.5% growth.

McDonald's said it also saw a strong performance in overseas markets including the UK, where it was boosted by demand for chicken products and iced fruit smoothies during the summer.

Total (LSE: 524773.L - news) revenue - including the impact of some restaurants being sold to franchise holders - was down 3% to $6.4bn (£5.3bn) though this was also better than expected.

Net (LSE: 0LN0.L - news) income for the third quarter to the end of September increased by 2.6% to $1.3bn (£1bn). Shares (Berlin: DI6.BE - news) rose 3%.

McDonald's British boss Steve Easterbrook has said he wants to turn the chain into a "modern, progressive burger company".

He was appointed last year amid slumping US sales, intense competition and changing consumer tastes.

Mr Easterbrook has introduced the all-day breakfast in the US, banned the use of antibiotics in US chicken products, and sought to improve service.

He said the latest results were "testament to the progress we are making to satisfy the needs of today's dynamic customers".