McDonald’s shares opened in record territory Tuesday, thanks to a stronger-than-expected second-quarter performance that got a boost from upscale burgers and chicken sandwiches and discounted beverages.
- EPS: 1.70 cents vs. 1.62 expected, according to Thomson Reuters
- Revenue: $6.05 billion vs. $5.96 billion expected, according to Thomson Reuters
- U.S. same-store sales: 3.9 vs. 2.9 expected, according to StreetAccount
The Golden Arches reported earnings of $1.70 per share on $6.05 billion in revenue. The burger giant was expected to post earnings of $1.62 per share on $5.96 billion in revenue, according to Thomson Reuters estimates.
Shares of the company rose more than 4.4 percent on Tuesday, reaching a new high of $159.64.
“We’re building a better McDonald’s and more customers are noticing,” CEO Steve Easterbrook said in a statement. “Our relentless commitment to running great restaurants and keeping the customer at the center of everything we do is generating broad-based strength and momentum across our entire business.”
The company said that it excelled in the quarter due to its national cold beverage value promotion, which offers soft drinks for $1, and the launch of Signature Crafted sandwiches.
The company said same-store sales grew 6.6 percent globally, with same-store sales in the U.S. jumping 3.9 percent.
Wall Street anticipated that the company would report same-store sales growth of 3.7 percent globally for the quarter, with same-store sales in the U.S. rising 2.9 percent, according to StreetAccount.
McDonald’s reiterated that its focus will be on four pillars in order to achieve sustained growth and attract more customers: menu innovation, store renovations, digital ordering and delivery.
The company’s “experience of the future,” which includes renovated locations, ordering kiosks and table service, is coming to about 650 restaurants this year, bringing the chain’s number of these stores to nearly 2,500.