McDonald’s Corporation (MCD) rose in late trading on Wednesday after topping expectations with its fourth-quarter earnings report.
Global comparable sales stayed positive in Q4, with a strong 5.7% swing higher. Of note, McDonald’s (MCD) global comparable sales decreased 1.0% in Q1 before increasing 3.8% in Q2 and rising 3.6% in Q3.
U.S. comparable sales jumped 6.8%. The restaurant company said the comparable sales results in the U.S. were primarily driven by positive check and guest count growth, primarily from successful marketing promotions.
The International Operated Markets segment reported a 5.2% rise in comparable sales during the quarter. Nearly all markets reflected positive comparable sales, led by the U.K., Germany, and Australia.
The International Developmental Licensed Markets segment saw a 4.5% comparable sales increase. Nearly all markets reflected positive comparable sales, led by the U.K., Germany, and Australia.
Consolidated operating income increased 10% during the quarter. EPS was $3.12 vs. $3.05 consensus and $2.83 a year ago.
“McDonald’s value leadership is working,” stated CEO Chris Kempczinski. “By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter. The momentum we’ve built reinforces the progress we’ve made with our strategy and has earned us the right to look forward together as a system,” he added.
Shares of McDonald’s (MCD) rose 2.2% in postmarket action to a new 52-week high. Restaurant stocks such as Wendy’s (WEN), Shake Shack (SHAK), Yum! Brands (YUM) and Restaurant Brands International (QSR) are also on watch.