McDonald’s (NYSE:MCD) on Thursday beat Wall Street’s estimates for its quarterly earnings as net sales topped pre-pandemic levels.
On the heels of the strong performance, the fast-food giant raised its outlook for system-wide sales growth.
The fast-food giant reported fiscal first-quarter net income of $1.54 billion, or $2.05 per share, up from $1.11 billion, or $1.47 per share, a year earlier.
Excluding items, McDonald’s earned $1.92 per share, topping the $1.81 per share expected by analysts.
Net sales rose 9% to $5.12 billion, beating expectations of $5.03 billion. Global same-store sales climbed 7.5% in the quarter, surpassing 2019 levels.
Sales growth was driven by the United States, where same-store sales jumped 13.6%. A year ago, same-store sales were roughly flat after March demand plummeted. Chicken-focused menu items, like the Spicy Chicken McNuggets and Crispy Chicken Sandwich, helped fuel sales this quarter.
Outside of the U.S., results were mixed. The international operated markets segment, which includes the United Kingdom, Australia and France, reported same-store sales growth of 0.6%.
A year ago, its same-store sales fell 6.9% as lockdowns were implemented. This quarter, COVID-19 restrictions weighed on France and Germany, while Canada, the U.K. and Australia saw positive same-store sales growth.
In McDonald’s international developmental licensed markets segment, same-store sales rose 6.4%, fueled by growth in China and Japan. A year ago, same-store sales shrank by 5.3%.
The company raised its system-wide sales outlook for 2021 from growth in the low double digits to the mid-teens.
MCD shares began Thursday up $1.58 to $234.05
