- McDonald’s first-quarter earnings and revenue topped Wall Street’s estimates.
- The fast-food chain’s U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic.
- All three of McDonald’s divisions reported same-store sales growth of 12.6%.
McDonald’s on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations as U.S. consumers keep buying Big Macs and Shamrock Shakes.
Shares of the company rose about 1% in premarket trading.
Here’s what the company reported compared with Wall Street expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.63 adjusted vs. $2.33 expected
- Revenue: $5.9 billion vs. $5.59 billion expected
The fast-food giant reported first-quarter net income of $1.8 billion, or $2.45 per share, up from $1.1 billion, or $1.48 per share, a year earlier.
Excluding $180 million in restructuring charges and other items, McDonald’s earned $2.63 per share.
Net sales rose 4% to $5.9 billion. All three of its divisions reported same-store sales growth of 12.6%.
In its home market, higher menu prices and increased traffic fueled same-store sales growth, which topped StreetAccount estimates of 7.9%.
McDonald’s U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic as menu prices rise. Historically, fast-food chains like McDonald’s have fared well during times of economic uncertainty as consumers trade down to its cheaper meals.
Outside the United States, McDonald’s also saw better-than-expected sales. Its international operated markets, which include the United Kingdom, France, Germany and Australia, beat StreetAccount estimates of 8.5% same-store sales growth.
Its international developmental licensed markets segment, which includes China and Japan, topped same-store sales expectations of 10.5%.
This is breaking news. Please check back for updates.
Source: Business - cnbc.com
