dailyloe.com – McDonald’s reported quarterly earnings and revenue on Thursday that surpassed analysts’ expectations. CEO Chris Kempczinski described the current environment as ‘challenging.’ Shares of McDonald’s rose over 3% in premarket trading following the announcement.
Investors are keen on insights regarding consumer spending influenced by rising gas prices. The company’s earnings conference call is scheduled to start at 8:30 a.m. ET.
Other restaurant companies, including Domino’s Pizza and Chipotle Mexican Grill, reported a decline in sales during March, coinciding with the U.S. war with Iran and rising fuel prices.
McDonald’s reported a first-quarter net income of $1.98 billion, or $2.78 per share, up from $1.87 billion, or $2.60 per share, a year earlier. Adjusted earnings per share, excluding restructuring charges, were $2.83.
The company’s same-store sales increased by 3.8% in the quarter, closely aligning with the Wall Street consensus estimate of 3.7%, according to StreetAccount.
In the U.S., same-store sales increased by 3.9%, driven by higher customer spending. McDonald’s has focused on value to attract budget-conscious diners while also engaging customers through marketing and innovation.
Promotional meals tied to ‘The Super Mario Galaxy Movie’ and ‘KPop Demon Hunters’ were not discounted. Additionally, the limited-time Big Arch burger, launched in early March, aimed to provide a premium option.
McDonald’s international operated markets segment reported a same-store sales growth of 3.9%. This segment includes significant markets such as France, Germany, and Australia.
The international developmental licensed markets segment experienced a 3.4% growth in same-store sales, with Japan being the top performer in the first quarter.
