Benzinga | Oct 8, 2020 10:16AM EDT

McDonald's, Domino's Not Immune To COVID-19 Pandemic In Q3

Shares of McDonald's Corp (NYSE:MCD) and Domino's Pizza, Inc. (NYSE:DPZ) moved in opposite directions Thursday morning after the hamburger chain announced third-quarter comparable sales and the pizza chain reported third-quarter results.

McDonald's Sales: McDonald's reported U.S. same-store sales in the third quarter rose 4.6%. The positive comps were attributed to average check growth from larger group orders and strong performance during dinner times.

McDonald's performance appears to have benefited from a new collaboration with rapper Travis Scott that kicked off in September.

Company-wide comparable same store sales were down 2.2% in the quarter. International Operating Markets same-store sales were down 4.4% while International Developmental Licensed Markets & Corporate same-store sales were down 10.1%.

In conjunction with the update, McDonald's board of directors authorized a quarterly cash dividend increase of 3% to $1.29 per share.

"While current year business results have been impacted by the Covid-19 pandemic, the pace of recovery paired with the Company's strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business," McDonald's told CNBC.

McDonald's stock traded up about 1% but pared those gains at publication time.

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Domino's Q3: Domino's said it earned $2.49 per share in the third quarter on revenue of $967.72 million versus expectations of $2.78 per share and $952.97 million.

Net income improved from $86.4 million in the same quarter last year to $99.1 million while U.S. same-store sales were up 17.5% and international same-store sales were up 6.2%.

The company's bottom line was impacted by COVID-related costs, including pay increases and enhanced sick pay for its workers. Domino's also noted its net income was negatively impacted by higher net interest expense after drawing $158 million in the early days of COVID.

However, the company repaid around $58 million of its new debt in the third quarter after paying $100 million in the second quarter.

Domino's total U.S. store count grew by 44 units to 6,239 in the quarter. The trailing four quarters net store growth stands at 254 units.

The company ended the quarter with $330.7 million in cash and cash equivalents, $4.11 billion in total debt, and $160 million of available borrowings.

The stock as down more than 7% at publication time.