McDonald’s All-Day Breakfast Is a Big Hit
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.