McDonald’s Corp. (NYSE:MCD) stock was down 0.89% in early afternoon trading on May 2. Shares have declined 5% in 2018 so far but are up 15% year over year. McDonald’s released its first quarter results on April 30.
In the first quarter global comparable sales rose 5.5% year-over-year and guest counts climbed by 0.8%. System-wide sales increased 7% in constant currencies and consolidated operating income rose 5%.
McDonald’s saw its U.S. business boosted by menu price increases and product mix shifts has recovered reasonably well in areas that were affected by Hurricanes in the latter half of 2017. The International segment posted comparable sales growth of 7.8% with good results in the United Kingdom and Germany. Total net income in the first quarter increased 8% year-over-year to $1.37 billion.
McDonald’s has consistently met challenges even as its growth prospects were seen to be in question. The company revamped its menu and staged an impressive comeback in 2017 that has extended into the first quarter of this year. The all-day breakfast has been a huge hit, and its new dollar menu strategy has paid off so far.
The company has been historically robust even during periods of economic downturn. The stock also offers a quarterly dividend of $1.01 per share representing a 2.4% dividend yield. McDonald’s is a staple for a portfolio looking for U.S. exposure and its results in Q1 are promising for the remainder of 2018.
Related Stories
