McDonald’s (MCD) tops quarterly expectations as comparable sales strengthen worldwide

McDonald’s Corp. (NYSE:MCD) reported first-quarter results that exceeded Wall Street expectations, pushing shares approximately 3.5% higher in premarket trading Thursday.

The fast-food giant posted adjusted earnings of $2.83 per share, ahead of the analyst consensus estimate of $2.75 by $0.08.

Quarterly revenue came in at $6.52 billion, topping analyst expectations of $6.48 billion and increasing 9% compared with the prior year.

Global comparable sales rose 3.8% during the quarter.

In the United States, comparable sales increased 3.9%, supported by higher average customer spending.

International Operated Markets also posted 3.9% comparable sales growth, led by strong performance in the U.K., Germany, and Australia.

Meanwhile, International Developmental Licensed Markets recorded comparable sales growth of 3.4%, with Japan contributing the strongest gains.

Systemwide sales increased 11%, or 6% on a constant-currency basis, surpassing $34 billion.

“McDonald’s delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment,” said Chairman and CEO Chris Kempczinski. “And it’s our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.”

Consolidated operating income increased 12%, or 6% in constant currencies.

Excluding $47 million in restructuring charges tied to the company’s Accelerating the Organization initiative, operating income rose 11%, or 5% in constant currencies.

McDonald’s also reported continued growth in its loyalty program, with systemwide sales generated by loyalty members exceeding $9 billion during the quarter across 70 markets.

The company said results benefited from stronger sales-driven franchised margins, although gains were partially offset by a higher effective tax rate.

McDonald’s added that every geographic region within its International Developmental Licensed Markets segment delivered comparable sales growth during the quarter.

McDonald’s operates one of the world’s largest restaurant chains, serving customers through company-owned and franchised locations across more than 100 countries. The company’s business focuses on quick-service dining, digital ordering, loyalty programs, and menu innovation across global markets.