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McDonald's Q1 Earnings Beat Lifts Stock

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McDonald's Q1 Earnings Beat Lifts Stock

McDonald's Corp (NYSE: MCD) reported first-quarter results that came in better than expected and helped lift shares higher by nearly 3 percent.

What Happened

McDonald's said it earned $1.78 per share in the first quarter on revenue of $4.956 billion versus expectations of $1.77 per share and $4.93 billion. Net income fell 3 percent from the same quarter last year to $1.3284 billion, but would have been higher by 2 percent on a currency neutral basis.

During the quarter, McDonald's paid $1.9 billion to investors in the form of dividends and share buybacks.

Why It's Important

Global comparable sales were 5.4 percent higher in the quarter, including a 4.5-percent lift in the U.S. market, the company. McDonald's cited its growth on successful promotions, including Bacon Event, the 2 for $5 Mix and Match deal, and Donut Sticks.

McDonald's also said it realized a net positive impact from its Experience of the Future deployment in the U.S. market.

What's Next

McDonald's CEO Steve Easterbrook said its "Velocity Growth Plan" is showing signs of success as "more customers are experiencing a better McDonald's." Looking forward, the company remains focused on delivering further improvements to its business.

The recent acquisition of Dynamic Yield signals management's determination to "seize opportunities to unlock greater potential and position McDonald's for long-term sustainable growth," the CEO said.

The stock traded around $202.54 per share Tuesday morning, up 2.7 percent.

Related Links:

Did McDonald's Deliver A Beefy Quarter? The Street Debates

McDonald's, Restaurant Brands, Chipotle Are Morgan Stanley's Top Restaurant Picks In Challenging Year For Sector

Posted-In: Dynamic Yield Fast Food Steve EasterbrookEarnings News Restaurants Top Stories General Best of Benzinga

 

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