McDonalds Corp. (MCD) posted stronger-than-expected first quarter earnings Thursday as menu price hikes and solid global sales helped offset the impact of its suspension of business in Russia and higher food and labor costs.
McDonalds said diluted earnings for the three months ending in March were pegged at $2.28 per share, up 15.6% from the same period last year and firmly ahead of the Street consensus forecast. Group revenues, McDonalds said, rose 10.75% to $5.67 billion, just ahead of analysts' estimates of a $5.6 billion tally.
The world's biggest restaurant said same-store sales rose 11.8% for the period on a global basis, firmly ahead of Street forecasts, as Covid restrictions faded and restaurants re-opened, while U.S. sales jumped 3.5%.
"In a quarter that saw an increasingly complex and uncertain operating environment, I am proud to share that once again the Arches have shone brightly," said CEO Chris Kempczinski. "Our strong performance in the first quarter was underpinned by global comparable sales up nearly 12%, reflecting broad-based momentum across all segments. In most of our major markets, we sustained QSR traffic share gains by focusing on elevating our brand, accelerating digital channels and showcasing our core equities of chicken and beef."
"By staying on the side of the consumer and executing our strategy, Accelerating the Arches, we have continued to drive growth," he added. "It is why I believe there has never been a better time to be part of brand McDonald's."
McDonalds shares were marked 0.75% higher in early Thursday trading immediately following the earnings release to change hands at $249.00 each, a move that trims the stock's year-to-date decline to around 7.4%.
