McDonald's serves up higher spending in the US
Shares of the fast food chain by revenue rose more than 5% as global same-restaurant sales topped Wall Street forecasts.
It is driven by the strength in mature markets especially the United Kingdom and Germany. The stock was also the top gainer on the Dow Jones Industrial Average .DJI.
The results underscore the success of chief executive officer Steve Easterbrook’s multi-year turnaround plan launched in 2015 to refresh McDonald’s menus, add more technology to stores, and make outlets more welcoming for customers.
New changes also included adding more high-margin “gourmet” burgers, which use fresher and more expensive ingredients and cost $6 or $7, and new $1 to $3 value options.
Same-restaurant sales in its most profitable market, the United States, rose 2.9 percent and topped analysts’ expectations on higher average check tallies that was propelled by consumers opting for $1-$3 value menu items, while also adding more expensive burgers.
Customer visits in the U.S. declined, but rose notably in Japan, France, Australia and Canada leading to an overall traffic rise of 0.8%. Global sales at stores open at least 13 months rose 5.5%, easily topping an average estimate of 3.94%.
