McDonald's (MCD) just reported quarterly sales that beat analysts' expecations.
"In the US, first quarter comparable sales increased 5.4%, fueled by the ongoing popularity of All Day Breakfast and the introduction of McPick 2 - a branded national value platform," management said.
Analysts were looking for a more modest 4.4% gain in comparable sales, which represents sales growth in stores open for more than a year.
McDonald's fans' wish for breakfast served all day came true last fall. While this has been disruptive for the competition (and some franchisees), it has been a hit with customers. And McDonald's numbers show it.
Overall, the company reported Q1 net revenue of $5.9 billion and earnings of $1.23 per share, which both beat expectations.
"The turnaround plan we announced last year is grounded in enhancing these critical customer-driven elements, and I'm pleased to report that our turnaround is taking hold," CEO Steve Easterbrook said. "For the quarter, we generated higher sales, revenues and operating income in constant currencies across all business segments."
Global comparable store sales increased by 6.2%. Management notes that there was some benefit from the additional day due to leap year. International store growth was led by gains in the UK, Australia, and Canada. So-called "high growth" markets including China and Russia saw comparable sales grow 3.6%.
"Last week, McDonald's came together for our biennial worldwide convention to galvanize around the actions we're taking to be recognized by our customers as a modern and progressive burger company," Easterbrook said. "I came away energized by the talented franchisees, suppliers and employees from around the world who are working to strengthen the fundamentals of running great restaurants to build strong and sustainable momentum. While there is still work to be done, we are on the right path to make even greater progress."
Shares are up 2% in pre-market trading.
Sam Ro is managing editor at Yahoo Finance