McDonald’s Corporation (NYSE: MCD) topped market estimates on both revenue and earnings for the first quarter of 2019. Shares were up 1% in premarket hours on Tuesday.
Consolidated revenues fell 4% year-over-year to $4.96 billion, but came ahead of forecasts of $4.95 billion. Revenues increased 2% in constant currencies. The results reflected strong comparable sales, partly offset by the impact of the strategic refranchising initiative.
Reported net income fell 3% to $1.32 billion while EPS remained flat at $1.72, compared to the prior-year quarter. Adjusted EPS amounted to $1.78, topping estimates of $1.73.
Sales from company-operated restaurants fell 12% year-over-year to $2.2 billion while revenues from franchised restaurants grew 4% to $2.7 billion.
Global comparable sales grew 5.4%, reflecting strong comparable sales across all segments, and marking the company’s 15th consecutive quarter of positive global comparable sales. Systemwide sales rose 6% in constant currencies.
In the US, the success of promotions such as the Bacon Event, the 2 for $5 Mix and Match deal, and Donut Sticks, coupled with a positive impact from the Experience of the Future deployment, helped drive a 4.5% growth in comparable sales.
In the International Operated segment, comp sales rose 6%, reflecting positive results across all markets, driven mainly by the UK and France. In the International Developmental Licensed segment, comp sales increased 6%, reflecting positive sales performance across all geographic regions.