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McDonald’s Shares Rise After Q1 Beat on Value-Focused Playbook

The results suggest value offers are pulling budget-conscious diners back through loyalty-driven repeat visits.

Overview

  • McDonald’s, which reported results Thursday, posted adjusted EPS of $2.83 and revenue of $6.52 billion, topping Wall Street estimates, with results including $47 million in pre-tax restructuring charges.
  • Comparable sales rose 3.9% in the U.S. and 3.8% worldwide, a rebound from last year’s decline even if growth trailed some forecasts.
  • Management credited value deals, sharper marketing, and menu moves such as combo price cuts, new cold drinks, and the Big Arch burger for driving demand.
  • Systemwide sales climbed 11% to more than $34 billion and loyalty members generated over $9 billion in sales across 70 markets.
  • Executives called the backdrop challenging, citing uneven U.S. foot traffic and ongoing pressure in China, even as the stock rose about 3% in premarket trading.