HomeTrading NewsMcDonald’s earnings beat estimates as U.S. traffic grows despite price hikes

McDonald’s earnings beat estimates as U.S. traffic grows despite price hikes

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Delivery couriers are seen near McDonald’s restaurant in Krakow, Poland on April 12, 2023.
Jakub Porzycki | Nurphoto | Getty Images


Shares of the company rose about 1% in premarket trading.

Here’s what the company reported compared with Wall Street expectations, based on a survey of analysts by Refinitiv:

Earnings per share: $2.63 adjusted vs. $2.33 expectedRevenue: $5.9 billion vs. $5.59 billion expected

The fast-food giant reported first-quarter net income of $1.8 billion, or $2.45 per share, up from $1.1 billion, or $1.48 per share, a year earlier.

Excluding $180 million in restructuring charges and other items, McDonald’s earned $2.63 per share.

Net sales rose 4% to $5.9 billion. All three of its divisions reported same-store sales growth of 12.6%.

In its home market, higher menu prices and increased traffic fueled same-store sales growth, which topped StreetAccount estimates of 7.9%.

McDonald’s U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic as menu prices rise. Historically, fast-food chains like McDonald’s have fared well during times of economic uncertainty as consumers trade down to its cheaper meals.

Outside the United States, McDonald’s also saw better-than-expected sales. Its international operated markets, which include the United Kingdom, France, Germany and Australia, beat StreetAccount estimates of 8.5% same-store sales growth.

Its international developmental licensed markets segment, which includes China and Japan, topped same-store sales expectations of 10.5%.

This is breaking news. Please check back for updates.

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