MCDONALD'S Corp, the world's largest restaurant company, said third-quarter profit rose as consumers stretched by higher food costs bought US$1 double cheeseburgers and specialty coffees.

Net income climbed to US$1.19 billion, or US$1.05 a share, compared with US$1.07 billion, or 89 US cents, a year earlier, the Illinois-based company said yesterday in a PR Newswire statement. Profit exceeded analysts' estimates, the firm said.

Sales increased to US$6.27 billion from US$5.9 billion, the company said.

McDonald's grabbed United States sales from more expensive restaurants as it advertised iced mochas, US$1 iced sweet tea and dollar-menu foods. Comparable store sales increased 7.1 percent globally during the quarter, with Europe outpacing the US on demand for snack-sized chicken wraps in France and burgers and chicken sandwiches in the United Kingdom.

McDonald's benefited from "people having tough times right now, not spending as much money on discretionary food purchases," Michael Yoshikami, chief investment strategist at YCMNet Advisors, said in a Bloomberg Television interview on October 16. The Walnut Creek, California-based firm, managed US$1 billion in assets, including 179,715 McDonald's shares.

Fifteen analysts surveyed by Bloomberg News estimated average profit of 98 US cents. Eleven projected revenue of US$6.19 billion.

Global same-store sales were slated to advance 7 percent, according to the median of three estimates by Deutsche Bank Securities Inc, UBS Securities LLC and RBC Capital Markets.

McDonald's fell US$1.71, or 3 percent, to US$55.13 on Tuesday in New York Stock Exchange composite trading.

The company's shares fell 6.4 percent this year before yesterday, ranking third-best behind Wal-Mart Stores Inc and Johnson & Johnson among the 30-member Dow Jones Industrial Average.