McDonald’s (NYSE: MCD) shares roared into positive territory Tuesday, thanks to a stronger-than-expected second-quarter performance that got a boost from upscale burgers and chicken sandwiches and discounted beverages.
Earnings per Share came in at $1.70, surpassing the projected $1.62. Revenue was $6.05 billion versus the $5.96 billion expected. U.S. same-store sales improved 3.9% as compared to the expected 2.9%. Same-store sales grew 6.6% globally
The company said that it excelled in the quarter due to its national cold beverage value promotion, which offers soft drinks for $1.00, and the launch of Signature Crafted sandwiches which are priced between $5.00 and $7.00 each. Diners are now able to customize the Signature sandwiches with different toppings including pico guacamole, maple Dijon and sweet BBQ bacon.
The company has also been testing several new McCafe beverages including hot and iced caramel macchiatos, French vanilla cappuccinos and Americanos in three cities in California.
In addition, McDonald's has been testing loaded bacon and cheese fries in locations in Kentucky, Ohio, Pennsylvania and West Virginia, although success in these markets may not lead to a national rollout. Last year, the chain tested Gilroy garlic fries in California, and quickly sold out of the product. The garlic fries have yet to be launched nationwide.
The company also continues to work on renovating locations, and adding ordering kiosks and table service. Table service is coming to about 650 restaurants this year, bringing the chain's number of these stores to nearly 2,500.
Shares of McDonald’s leaped $7.93, or 5.2%, to $159.78 in the last hour of trading on Tuesday.
