McDonald's beats estimates as comparable sales rise

Investing.com -- McDonald’s Corp (NYSE: MCD) reported first-quarter results that exceeded analyst expectations, sending shares around 3.5% higher premarket on Thursday.

Adjusted earnings per share of $2.83 beat the consensus estimate of $2.75 by $0.08. Revenue reached $6.52 billion, surpassing the $6.48 billion estimate and marking a 9% increase from the prior year.

Global comparable sales increased 3.8% for the quarter, with the U.S. posting 3.9% growth driven by positive check growth. International Operated Markets rose 3.9%, led by the U.K., Germany and Australia, while International Developmental Licensed Markets increased 3.4%, with Japan leading the gains. Systemwide sales grew 11%, or 6% in constant currencies, to over $34 billion.

"McDonald’s delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment," said Chairman and CEO Chris Kempczinski. "And it’s our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want."

Consolidated operating income increased 12%, or 6% in constant currencies. Excluding restructuring charges of $47 million related to the company’s Accelerating the Organization initiative, operating income rose 11%, or 5% in constant currencies. The company’s loyalty program continued to expand, with Systemwide sales to loyalty members exceeding $9 billion for the quarter across 70 markets.

The results reflected higher sales-driven franchised margins, partly offset by a higher effective tax rate. All geographic regions in the International Developmental Licensed Markets segment reflected comparable sales growth for the quarter.

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