Finance: McDonald's crushes earnings expectations thanks to new Big Macs and all-day breakfast (MCD)
The launch of all-day breakfast and more recent menu changes helped lift sales in the US by 1.7%. McDonald's on Tuesday reported first-quarter earnings and sales that topped analysts' most bullish estimates amid declining visits to restaurants industrywide.
All-day breakfast and new sizes for its iconic Big Mac helped lift sales in the US by 1.7%, McDonald's said.
Global sales at stores open for at least one year — so-called comparable store sales — rose 4%, trouncing the consensus estimate for an increase by 1.3%.
The company reported adjusted earnings per share of $1.47, beating the forecast for $1.34. Total revenue fell 4% year-on-year to $5.68 billion, also topping analysts' forecast.
McDonald's cut prices during the quarter to beat its rivals in the competitive fast-food space, and as fewer Americans eat out because the price of food at grocery stores has declined. Visits to McDonald's US restaurants dropped 2.1% in 2016, even after the rollout of a new McPick 2 value menu early last year that offered bundled value meals for between $2 and $4.
McDonald's shares rose more than 2% in premarket trading.
Source: New feed
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