McDonald's crushes earnings expectations thanks to new Big Macs and all-day breakfast
(Hollis Johnson)
McDonald's on Tuesday reported first-quarter earnings and sales that topped analysts' most bullish estimates amid declining visits to restaurants industry-wide.
All-day breakfast and new sizes for the chain's iconic Big Mac helped lift sales in the US by 1.7%, McDonald's said.
Global sales at stores open for at least one year — so-called comparable store sales — rose by 4%, trouncing the consensus estimate for an increase of 1.3%.
The company reported adjusted earnings of $1.47 a share, beating the forecast for $1.34. Total revenue fell by 4% year-on-year to $5.68 billion, also topping analysts' forecast.
McDonald's cut prices during the quarter to beat its rivals in the competitive fast-food space and to attract customers as fewer Americans eat out in part because the price of food at grocery stores has declined. Visits to McDonald's US restaurants dropped by 2.1% in 2016, even after the rollout of a new McPick 2 value menu early last year that offered bundled value meals for $2 to $4.
McDonald's shares rose by more than 2% in premarket trading.
NOW WATCH: We tried McDonald's new Mac Jr. and Grand Mac to see how they stack up to the classic Big Mac
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