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McDonald’s All-Day Breakfast Is a Big Hit

January 25, 2016, 3:05 PM UTC
McDonalds To Offer Its Breakfast Menu All Day Long
FAIRFIELD, CA - JULY 23: A McDonald's Egg McMuffin and hash browns are displayed at a McDonald's restaurant on July 23, 2015 in Fairfield, California. McDonald's has been testing all-day breakfast menus at select locations in the U.S. and could offer it at all locations as early as October. (Photo illustration by Justin Sullivan/Getty Images)
Photograph by Justin Sullivan via Getty Images

McDonald’s (MCD) reported better-than-expected quarterly same-restaurant sales, helped by the launch of all-day breakfasts in the United States and strong demand in China.

Global same-restaurant sales rose 5%, above the 3.2% expected by analysts polled by research firm Consensus Metrix.

The world’s biggest restaurant chain’s shares rose 3% in premarket trading on Monday.

Sales at U.S. restaurants open at least 13 months rose 5.7%, handily beating the average estimate of 2.7%.

McDonald’s introduced all-day breakfasts in its U.S. restaurants in October, in a bid to attract more diners in the face of growing competition from rivals such as Chipotle Mexican Grill Inc and Shake Shack Inc.

“As we enter 2016, we expect continued positive top-line momentum across all segments,” said Chief Executive Officer Steve Easterbrook, who took the helm last year.

The company does not break out China sales but said sales in its “high growth” markets, which include Russia and China, rose 3 percent.

The company’s net income rose to $1.21 billion, or $1.31 per share, in the fourth quarter ended Dec. 31, from $1.1 billion, or $1.13 per share, a year earlier.

Analysts on average had expected earnings of $1.23 per share, according to Thomson Reuters I/B/E/S.

Revenue fell 3.5% to $6.34 billion, mainly due to a strong dollar, but beat the average analyst estimate of $6.22 billion.