McDonald's fourth-quarter results are out, and they look great.
The fast-food giant beat analysts' expectations on earnings, revenues, and US sales, proving that its turnaround strategy is bearing fruit.
McDonald's reported adjusted earnings per share of $1.31 on revenues of $6.34 billion. Analysts had expected McDonald's to report adjusted earnings per share of $1.23 on revenues of $6.23 billion, according to Bloomberg.
Global comparable-store sales — at locations open for at least a year — rose 5%. In the US, they jumped 5.7% thanks to all-day breakfast, beating the forecast for 3.2%.
Same-store sales had been expected to grow 3.2% in the US, and 3.7% internationally.
Shares rose 3% in pre-market trading and hit all-time highs after the market opened.(Google)
The company's shares have rallied 32% over the past year. They surged to all-time highs after the previous earnings report that showed US sales rose for the first time in two years, indicating that the turnaround strategy being implemented by CEO Steve Easterbrook was working.
The fast-food chain took several steps to stem the decline in sales, including new gourmet menu items, all-day breakfast, and management restructuring.
"We are demonstrating that our turnaround plan is key to restarting growth and becoming a modern and progressive burger company," Easterbrook said in the earnings release.
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