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BREAKING NEWS

Bacon-loaded menu drives McDonald's sales jump, shares rise

Bacon-loaded menu drives McDonald's sales jump, shares rise
FILE PHOTO: The logo of a McDonald's Corp <MCD.N> restaurant is seen in Los Angeles, California, U.S. October 24, 2017. REUTERS/Lucy Nicholson -
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LUCY NICHOLSON(Reuters)
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(Reuters) - McDonald's Corp reported a better-than-expected rise in quarterly sales at established U.S. restaurants on Tuesday, boosted by the burger chain's latest promotions and menu additions, sending its shares up about 4 percent.

During the first quarter, McDonald's launched a new two for $5 deal, tweaked its breakfast menu to add donut sticks, and offered applewood smoked bacon with a selection of its burgers and breakfast sandwiches.

The company is modernizing its stores by introducing digital menus and adding wooden tables and faux leather chairs as it seeks to attract diners in a competitive market.

Those efforts helped drive a 4.5 percent growth in same-store sales in the United States, beating the 3.03 percent rise expected by analysts, according to Refinitiv IBES. The beat was also its first in four quarters.

Net income fell to $1.33 billion (£1.02 billion), or $1.72 per share, in the first quarter ended March 31 from $1.38 billion, or $1.72 per share, a year earlier.

Excluding one-time items, the company earned $1.78 per share. Total revenue fell about 4 percent to $4.96 billion, due to its move to franchise a majority of its restaurants.

Analysts were expecting a profit of $1.75 per share on revenue of $4.93 billion.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)

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