McDonald's Profit Climbs Above Expectations
April 22 2016 - 08:50AM
Dow Jones News
By Lisa Beilfuss
McDonald's Corp. reported a jump in first-quarter profit that
easily topped expectations, more evidence that the company's
turnaround efforts are paying off.
Shares rose 2.4% in premarket trading.
Sales at McDonald's U.S. restaurants open at least 13 months
rose 5.4%, topping the 4.6% clip analysts expected and slowing just
slightly from the fourth quarter's strong 5.7% pace. All-day
breakfast continued to power domestic sales, the company said.
Meanwhile, international sales rose 5.2% from a year earlier,
pushing global comparable-store sales 6.2% higher during the
period.
Since taking the helm last March, Chief Executive Steve
Easterbrook has moved to breathe life into the fast-food chain's
sales by paring down its menu, offering more transparency about how
its food as made and launching all-day breakfast at thousands of
domestic restaurants.
"The turnaround plan we announced last year is grounded in
enhancing these critical customer-driven elements," Mr. Easterbrook
said Friday, adding that "our turnaround is taking hold."
Evidence that a turnaround was gaining traction emerged late
last year, when McDonald's logged its best U.S. quarterly sales in
nearly four years. The CEO has said the initial boost from the
expanded breakfast menu hours would eventually moderate.
In all for the quarter, McDonald's reported a profit of $1.1
billion, or $1.23 a share, up from $811.5 million, or 84 cents, a
year earlier.
Revenue edged 0.9% lower to $5.9 billion. The decline was on
account of adverse exchange rates that hurt international sales.
Stripping out currency volatility, sales rose 3%.
Analysts had projected $1.16 in earnings per share on $5.82
billion in sales, according to Thomson Reuters.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
April 22, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
McDonalds (NYSE:MCD)
Historical Stock Chart
From Feb 2024 to Mar 2024
McDonalds (NYSE:MCD)
Historical Stock Chart
From Mar 2023 to Mar 2024