McDonald's beats expectations thanks to its price hikes
McDonald's on Monday reported first-quarter earnings and sales that topped analysts' most bullish estimates amid declining visits to restaurants industry-wide.
Menu price increases helped lift US sales by 2.9%, McDonald's said. Global sales at stores open for at least one year - so-called comparable store sales - rose by 5.5%.
"We continued to build upon the broad-based momentum of our business, marking 11 consecutive quarters of positive comparable sales and our fifth consecutive quarter of positive guest counts," McDonald's President and Chief Executive Officer Steve Easterbrook said in the earnings release.
The company reported adjusted earnings of $1.72 a share, beating the Wall Street consensus of $1.67. The company said $0.07 a share of earnings was wiped out as a result of the newly implemented tax cuts. Revenue fell 9.5% year-on-year to $5.14 billion, also topping analysts' forecast.
McDonald's shares are up 4.22% ahead of the opening bell. They've lost 8% this year through Friday.
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