McDonald’s Corp. sales picked up in the latest quarter, suggesting that pop culture-focused collaborations and budget meals are helping to offset diners’ economic anxiety.
McDonald’s shares gained 3.1% in premarket trading.
Global sales at restaurants open at least 13 months rose 3.8% in the second quarter, the company said Wednesday. That’s higher than the average estimate of analysts polled by Bloomberg. International markets led the company’s growth, while the US was slightly ahead of expectations because of larger check sizes.
The results ended four quarters of declining or tepid growth as the burger chain dealt with an E. coli outbreak, backlash against American brands in the Middle East and consumer unease about the economy in response to President Trump’s trade disputes.
McDonald’s second-quarter efforts to bring in customers included a meal timed to the launch of the Minecraft movie and a Squishmallows themed limited-time offer. In the US, the company launched chicken strips while trying to win over budget-sensitive diners with offerings such as its meal bundle starting at $5.
Second-quarter earnings, excluding some items, were $3.19 a share — higher than analysts’ average estimate. Revenue, which consists of sales by company-operated restaurants and fees from franchised locations, also outpaced expectations.
Ahead of the earnings release, analysts were expecting growth for McDonald’s global same-store sales to accelerate in the second half of the year. Initiatives such as the relaunch of the Snack Wrap — which customers requested for years — and easier comparisons given slow year-ago sales were fueling the outlook.
The company also plans to test new beverages, including cold coffees and crafted sodas, at more than 500 US locations starting in September.
McDonald’s shares had risen 3.1% this year through Tuesday’s close, trailing the 7.1% increase in the S&P 500 Index.
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