McDonald’s (NYSE: MCD) on Monday reported better-than-expected first-quarter earnings, as menu price increases fueled higher check averages in the U.S.
Although McDonald's has been luring customers with a number of value deals, the larger tickets prove diners aren't just looking for cheap eats.
Global same-store sales were also strong, topping estimates as the number of customers coming through the door increased 0.8%.
"We continued to build upon the broad-based momentum of our business, marking 11 consecutive quarters of positive comparable sales and our fifth consecutive quarter of positive guest counts," Steve Easterbrook, CEO of McDonald's, said in a statement Monday.
"More customers are recognizing that we are becoming a better McDonald's."
The company reported earnings of $1.79 per share, adjusted, vs. $1.67 per share expected in analysts. Revenue registered $5.14 billion vs. $4.98 billion expected. Same-store sales enjoyed this 2.9% increase in the U.S., in line with estimates.
Globally, same-store sales rose 5.5%, helped by strong international sales, particularly in the U.K. and Germany, topping the 3.7% growth that was expected.
In the quarter ended March 31, the company said net income rose to $1.38 billion, or $1.72 per share, up from $1.21 billion, or $1.47 per share, a year earlier.
Easterbrook concluded, "We're keeping the customer at the centre of everything we do as we continue enhancing their McDonald's experience.
"Guided by our Velocity Growth Plan, we are satisfying the rising expectations customers have for the taste and quality of our food and greater convenience as they visit our restaurants or enjoy meals delivered to their homes and offices.
"We are confident in the strategies guiding our business for today and for long-term sustained growth into the future."
Shares in the Golden Arches ballooned $6.04, or 3.8%, to $164.34.
