Sales growth tops estimates as higher prices, traffic boost results

McDonald’s (MCD) reported first quarter results Tuesday that beat expectations as sales were boosted by higher prices and more customer traffic.

The company reports same-store sales rose 12.6% in both the US and abroad, beating estimates across the board as revenue and earnings per share also topped forecasts. Wall Street analysts expected same-store sales would rise 7.5% in the US and 8.2% on a global basis.

Year-to-date shares of McDonald’s are up nearly 11% against a 7% gain for the S&P 500.

Here are they key figures from McDonald’s first quarter report compared to Street estimates, according to data from Bloomberg:

• Revenue: $5.9 billion vs. $5.58 billion expected

• Adjusted earnings per share: $2.63 vs. $2.31 expected

• Same-store sales: +12.6% vs. 8.2% expected

  • U.S. same-store sales: +12.6% vs. +7.5%expected

  • International Operated markets same-store sales: +12.6% vs. +9.3 %

  • International Development Licensed Markets: +12.6% vs. +10.2%

The company reported charges of $180 million, or 18 cents per share, related to its restructuring plan.

“Our strong first quarter results demonstrate that our Accelerating the Arches strategy is working, as comparable store sales grew 12.6% through a healthy balance of strategic menu price increases and positive traffic growth,” McDonald’s CEO Chris Kempczinski said in a release.

In the US, sales were boosted by from higher menu prices and positive guest count growth, the company said. Marketing campaigns featuring core menu items like the Cardi B & Offset Meal, in addition to continued digital and delivery growth led to sales up 12.6% in the first quarter.

Same-store sales in McDonald’s international markets also rose 12.6% during the quarter.

This report also comes after McDonald’s announced its Accelerating the Arches 2.0 program back in January, an update to its growth strategy.

With that, the company added a second D to its M-C-D strategy (maximizing marketing, committing to the chain’s core products of burgers, chicken, and coffee and delivery, drive-thru, and digital). The second D stands for restaurant development.

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As part of this strategy, the fast food chain unveiled changes to its burger lineup last week.

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].

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