McDonald's All-Day Breakfast Still a Boon
April 25 2017 - 9:11AM
Dow Jones News
By Anne Steele
McDonald's Corp. posted robust same-store sales in the U.S. and
globally, helping assuage investor fears of a leveling-off in
enthusiasm over its all-day breakfast roll-out.
Shares in the company rose 2.1% premarket to $137.05.
During the March quarter, the burger chain's global comparable
sales jumped 4%, well above the 1.3% increase anticipated by
analysts in a Consensus Metrix survey.
Comparable sales climbed 1.7% in the U.S., building on the
prior-year launch of its all-day breakfast service. The company
said first-quarter performance benefited from the expansion of
all-day breakfast offerings as well as Big Mac and beverage
promotions. Analysts anticipated a 0.8% decline as Chief Executive
Steve Easterbrook warned the company would face a difficult
comparison in the quarter.
"There's a sense of urgency across the business as we take
actions to retain existing customers, regain lapsed customers and
convert casual customers to committed customers," Mr. Easterbrook
said Tuesday. He said the company is continuing to build a more
personalized and enjoyable visit in order to gain traffic in an
increasingly competitive industry.
McDonald's has been transferring ownership of its many
restaurants to independent operators. The model, which other
fast-food chains have been adopting, lets companies collect a piece
of sales without the costs and headache of managing hundreds of
stores.
During the first quarter, revenue from franchised restaurants
climbed 5.3% as sales from company-operated restaurants, which
makes up a larger chunk of the top line, slipped 9.1%.
In all, McDonald's earned $1.21 billion, or $1.47 a share, up
from $1.12 billion, or $1.25 a share, a year earlier. Revenue
slipped 3.9% to $5.68 billion. Analysts polled by Thomson Reuters
had expected $1.33 a share on $5.53 billion in revenue.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 25, 2017 08:56 ET (12:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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