McDonald’s (MCD) reported first-quarter earnings that beat analyst expectations due to higher prices on its food items and as traffic at its restaurants grew around the world.
The quick service restaurant chain, which is based in Chicago, reported earnings per share (EPS) of $2.63 U.S. versus $2.33 U.S. that was forecast on Wall Street.
McDonald’s revenue came in at $5.9 billion U.S. versus $5.59 billion U.S. that was expected among analysts that track the company.
Net income during Q1 totaled $1.8 billion U.S., up 63% from $1.1 billion U.S. a year earlier. Net sales rose 4% to $5.9 billion U.S. in the latest period.
In its home market of America, higher menu prices and increased traffic fueled same-store sales growth that topped estimates of 7.9%.
This is the third consecutive quarter that McDonald’s U.S. traffic rose, showing that the company has strong pricing power or the ability to lift prices without losing customers.
McDonald’s traditionally does well during times of economic uncertainty as consumers gravitate to its cheaper meals.
Outside the U.S., McDonald’s also saw better-than-expected sales. Its internationally operated markets beat estimates of 8.5% same-store sales growth.
McDonald’s stock has risen 16% in the past year to trade at $293.20 U.S. per share.
