McDonald's shares climb on strong earnings report

Shares of McDonald's rose 7% in early trading after the company released strong third-quarter earnings results.

Earnings per share were up 28% to $1.40 from $1.09 last year, despite a decline in revenue to $6.61bn from $6.98bn in 2014, mostly caused by a strong dollar.

McDonald's saw a 0.9% rise in US same-store sales in the US.

The company's chief executive, Steve Easterbrook, has been trying to revive the chain's appeal as it faces fresher or healthier competitors.

"Consumers have more choices than ever about where to dine, and our operational growth-led turnaround is focused on appealing to customers in the areas that matter most to them - great-tasting, high-quality food, convenience and value," Mr Easterbrook said in a statement.

However, the operating income for company-operated US stores declined by 1% because of greater spending on employee wages and benefits.

McDonalds is the world's largest fast food chain.

In the US the company's largest market it reported a 0.9% growth in sales at stores open in past 13 months. Restaurants in the UK, Canada and Australia also saw growth.

The burger chain has been trying a number of initiatives to attract customers who have migrated to brands like Chipotle and Burger King.

McDonalds has been introducing new menu items, testing all day breakfast and improving ingredients used in some sandwiches.