The fast food giant said same-store sales in the U.S. rose 5.4% during the first quarter, powered by the continued popularity of Egg McMuffins and hash browns at all hours of the day and the introduction of a new value deal called McPick 2.
“All-day breakfast exceeded our expectations through the launch phase,” said CEO Steve Easterbrook on a call with analysts and investors, adding that ”frankly, it’s still exceeding our expectations.”
“I’m pleased to report that our turnaround is taking hold,” said Easterbrook in prepared remarks, who noted that the investments the company is making “are beginning to yield sustained positive results.”
The Golden Arches has been working to revive flagging sales through a number of measures, including introducing new menu items and adjusting pricing. This week, McDonald’s announced it’s testing bigger and smaller versions of its Big Mac. It’s also running a new value menu where customers can purchase two items, like Chicken McNuggets and the Filet-O-Fish, for $5.
This is now the third straight quarter that McDonald’s has reported a rise in U.S. same-store sales, following two years of declines.
Overall, global same-store sales rose 6.2%, led by strength abroad in the U.K., Australia, Canada and China.
During the quarter, net income jumped 35% to $1.09 billion, or $1.23 per share, from $811 million, or 84 cents per share, in the same period a year ago. This trounced Wall Street analyst estimates of $1.16 per share.
Revenue slid 1% to $5.90 billion, but also beat analyst estimates of $5.82 billion.
Shares of McDonald’s, which are up 6% this year, rose 2% in pre-market trading on Friday.