Kiosks for ordering food sit in the dining area of a McDonald’s restaurant located inside the company’s new corporate headquarters on June 4, 2018 in Chicago.
Scott Olson | Getty Images
McDonald’s on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations.
Shares of the company rose 3% in premarket trading.
“We started the year strong with our 15th consecutive quarter of positive global comparable sales, reflecting continued broad-based momentum across each of our global segments,” CEO Steve Easterbrook said in a statement.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.78, adjusted, vs. $1.75 expected
- Revenue: $4.96 billion vs. $4.93 billion expected
- Same-store sales: up 5.4% vs. 3.4% increase expected
The Chicago-based company reported fiscal first-quarter net income of $1.33 billion, or $1.72 per share, unchanged from a year earlier.
Excluding an additional $47 million of income tax costs, McDonald’s earned $1.78 per share, beating the $1.75 per share expected by analysts surveyed by Refinitiv.
Net sales dropped 4% to $4.96 billion, topping expectations of $4.93 billion. Excluding currency fluctuations, revenue increased by 2%. The negative impact of the company’s refranchising initiative partially offset its strong same-store sales. The fast food giant reported global same-store sales growth of 5.4%, beating Wall Street’s estimates of 3.4%.
In the U.S., sales at stores open at least a year increased by 4.5%. McDonald’s attributed the growth to its promotions, like its hour-long free bacon giveaway, the 2 for $5 Mix and Match deal and Donut Sticks. The company also said that is seeing a “net positive impact” from its Experience of the Future store renovations. As foot traffic to stores has fallen, the company has been investing heavily in modernizing its U.S. stores with self-serve kiosks, digital menu boards and other upgrades.
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