MCD McDonalds Corp

McDonald's reported fourth-quarter profit and sales that beat expectations as customers flocked to its all-day breakfast menu, the latest sign of progress in the burger giant's turnaround effort.

Shares in the company, up 5.2% over the past three months, rose 3% premarket.

The Illinois-based company said sales at U.S. restaurants open at least 13 months jumped 5.7% in the fourth quarter—a stronger-than-expected increase that marks a back-to-back gain in the metric after two years of declines. Same-store sales across all regions rose 5% from a year earlier.

Under Chief Executive Steve Easterbrook, who took the helm last year, McDonald's has announced a stream of initiatives—from curbing antibiotics use in its chicken supply and simplifying its menu to creating a new global corporate structure—to refresh the company's image and end a sales slump that started several years ago. It started offering in the fall breakfast items all day in the U.S., its biggest operational change in years

On Monday, Mr. Easterbrook called the fourth-quarter results "a testament to the swift changes we made and the early impact of our turnaround efforts." McDonald's credited strong same-store sales to the all-day breakfast offering as well as unseasonably mild weather.

Overall, McDonald's posted a profit of $1.21 billion, or $1.31 a share, up from $1.1 billion, or $1.13 a share, a year earlier.

Revenue declined 3.5% to $6.34 billion. Analysts projected $1.23 in per-share profit on $6.22 billion in revenue, according to Thomson Reuters.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

January 25, 2016 08:35 ET (13:35 GMT)

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