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Due to persistent consumer demand and price hikes that helped offset higher costs, McDonald’s Corporation reported first-quarter earnings and sales that were higher than anticipated.
The Big Mac manufacturer credited the international burger chain’s 12.6% increase in comparable sales for the three months that ended on March 31 to higher menu prices as well as development in its digital activities. According to Bloomberg consensus forecasts, sales would have increased by 8.19%.
Diners continued to pour into the chain’s restaurants, according to McDonald’s, despite the higher prices and broader inflationary pressures that have been threatening to impact on overall economic activity.
“Amidst a challenging operating environment, customer demand for McDonald’s Brand remains strong,” said president and chief executive officer Chris Kempczinski in a statement.
Total revenues also moved higher by 4.1% year-on-year to just under $5.90 billion, topping estimates of $5.57B. However, total operating costs and expenses inched up to $3.37B, while it also booked a pre-tax restructuring charge of $180 million.
Operating profit subsequently came in at $2.53B, a gain of 10% compared to the same period last year and above projections of $2.45B. Adjusted earnings per share of $2.63 also beat expectations of $2.33.