Shares in McDonald's hit their highest level for more than seven years yesterday as the fast food retailer said growth was accelerating in all main regional markets.

European sales rose at their fastest rate in nearly 15 years last year and the business in the United Sates also remained strong, showing how the much-heralded trend towards healthier eating has failed to dent demand for the company's food.

US growth was driven by soaring sales of breakfast meals, chicken sandwiches and tortilla wraps, highlighting the push by McDonald's to diversify its menu as consumers' tastes change.

Global same store sales - those made in restaurants open at least a year - rose 6.3 per cent in the fourth quarter and 5.7 per cent in 2006.

Paul Westra, analyst at Cowen & Co, said the results confirmed his belief that the fast food retailer's solid momentum in the US was sustainable, while turnround in Europe was continuing to progress.

The company, which has more than 30,000 restaurants in about 120 countries, said fourth-quarter profits would exceed expectations when announced next week.

The company said it expected to earn 61 cents per share for the fourth quarter, excluding a gain of 39 cents a share related to the spin-off last year of the Chipotle Mexican Grill business.

Analysts are expecting earnings, before one-time items, of 58 cents a share, according to Reuters Estimates.

The shift in the Christmas holiday to Monday in 2006 from Sunday in 2005 also helped sales in some countries.

By midday in New York, the shares had risen 0.8 per cent to $4.91. - ( Financial Times service )