McDonald's U.S. Sales Rebound From Covid-19 Pandemic

By Heather Haddon

McDonald's Corp. said new menu items helped it beat sales expectations in the U.S., while business abroad remained volatile because of shifting Covid-19 restrictions.

Busy drive-throughs and a focus on menu staples have helped propel sales in the U.S. despite the pandemic, the chain said. In recent months, McDonald's has introduced meals in collaboration with celebrities such as the musician Travis Scott, added a new crispy chicken sandwich and rolled out a spicy-nuggets promotion to increase sales.

On Thursday, McDonald's said same-store sales for the quarter ended in March increased 13.6% from a year earlier, beating expectations and bolstering results overall. Global same-stores sales were up 7.5% during the period.

Much of the world has had less access to Covid-19 vaccines than the U.S., leaving dining restrictions in place in many countries. Year-over-year sales increased in the U.K., China, Japan, Canada and Australia during the quarter, while they fell in Germany and France, McDonald's said.

McDonald's reported sales of $5.1 billion for the quarter, up 9% from a year earlier and more than the first quarter of 2019. McDonald's said the online and delivery sales to which it gave priority during the pandemic helped lift U.S. sales. The company is testing a loyalty program. Starbucks Corp. said earlier this week that such a program has aided in its pandemic recovery.

For its first quarter, McDonald's reported earnings adjusted for one-time items of $1.92 a share. Analysts polled by FactSet expected earnings of $1.81 a share by that metric. The chain reported net income of $1.54 billion.

Write to Heather Haddon at heather.haddon@wsj.com

(END) Dow Jones Newswires

April 29, 2021 07:14 ET (11:14 GMT)

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