McDonald's said today that first-quarter earnings would top analysts' expectations due to the strength of US products such as Snack Wrap chicken sandwiches and robust growth in Europe and Asia.
The news pushed shares of the world's largest restaurant company up 2 per cent to a more than seven-year high. McDonald's said it expects to report first-quarter earnings of about 62 cents per share, while analysts on average had forecast 57 cents.
Sales at McDonald's restaurants open at least 13 months were well above forecasts in March, rising 8.2 per cent, compared with an average estimate of 3.6 per cent among four analysts, according to research notes.
Restaurant analyst David Palmer of UBS said the results could indicate stronger-than-expected performance in the company's US business this summer. Many analysts had been expecting growth to slow later this year due to difficult comparisons with strong increases in previous years.
He had been expecting same-store sales gains of 3 per cent in both the second and third quarters. Initiatives such as a focus on breakfast and extended restaurant hours have been key to revitalizing performance at McDonald's US business over the last three years.
In recent months, the company's businesses in Asia and Europe have also enjoyed sharp sales increases, in part because of a strategy of combining higher-priced products with cheaper selections on the menu.