McDonald's Corp. (MCD) -) posted much better-than-expected second quarter earnings Thursday, with double-digit global sales growth, as the world's biggest restaurant chain continues to benefit from value-seeking diners in a high inflation market.
McDonald's said diluted earnings for the three months ending in June were pegged at $3.17 per share, up 24% from the same period last year and firmly ahead of the Street consensus forecast of $2.79 per share.
Group revenues, McDonald's said, rose 13.6% to $6.5 billion, again topping analysts' estimates of a $6.27 billion tally, with the overall tally blunted somewhat by the strength of the U.S. dollar.
McDonald's said same-store sales rose 11.7% for the period on a global basis, firmly ahead of Street forecasts of 8.9%, while U.S. sales jumped 10.3% thanks in part to a viral ad campaign featuring the animated 'Grimace' character, a throwback to McDonald's ads from the early 1970s.
"Our second quarter results reflect consistently strong execution of our Accelerating the Arches strategy, with global comparable sales growth of 11.7% and double-digit comparable sales growth across each of our segments," said CEO Chris Kempczinski. "The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations."
"While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow," he added.
McDonald's shares were marked 1.5% higher in early Thursday trading immediately following the earnings release to change hands at $295.90 each, a move that would extend the stock's year-to-date gain to around 12%.
