When McDonald’s Corp. (NYSE: MCD) released its first-quarter financial results before the markets opened on Tuesday, the golden arches posted $1.72 in earnings per share (EPS) and $4.96 billion in revenue. Consensus estimates had called for $1.76 in EPS and $4.93 billion in revenue, and in the same period of last year, the fast-food giant said it had EPS of $1.79 in $5.14 billion in revenue.
Consolidated revenues decreased 4% (increased 2% in constant currencies), reflecting strong comparable sales, partly offset by the impact of the strategic refranchising initiative. Consolidated operating income decreased 2% (increased 3% in constant currencies).
During the quarter, global comparable sales increased 5.4%, reflecting strong comparable sales across all segments. At the same time, systemwide sales increased 6.0% in constant currencies.
In the United States, first-quarter comparable sales increased 4.5%, reflecting successful promotions, including the Bacon Event, the 2 for $5 Mix and Match deal, and Donut Sticks, as well as a net positive impact from McDonald’s Experience of the Future deployment.
In the International operating segment, first-quarter comparable sales increased 6.0%, reflecting positive results across all markets, primarily driven by the United Kingdom and France. The International Developmental Licensed segment, first-quarter comparable sales increased 6.0%, reflecting positive sales performance across all geographic regions.
Steve Easterbrook, McDonald’s president and CEO, commented:
We started the year strong with our 15th consecutive quarter of positive global comparable sales, reflecting continued broad-based momentum across each of our global segments. We remain focused on running better restaurants and elevating the experience for our customers by providing convenience on their terms through delivery, Experience of the Future, and our evolving digital channels.
Shares of McDonald’s were last seen trading up fractionally to $198.37, within a 52-week range of $153.13 to $199.05. The consensus price target is $200.62.
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