MCD McDonalds Corp

By Allison Prang 

Same-store sales and profit both rose at McDonald's Corp. in the latest quarter, as the company aimed to entice customers with fresh beef in its quarter-pounders and a retooled value menu.

McDonald's said Monday global comparable sales rose 5.5%, ahead of the 3.8% growth forecast from analysts polled by Consensus Metrix. In the U.S., same-store sales rose 2.9% while they rose 7.8% in international lead markets. Both of those metrics topped estimates.

McDonald's said that the increase in same-store sales in the U.S. was fueled by higher average checks from an altered product mix and higher menu prices.

Global comparable guest counts rose 0.8%, the company said.

Revenue fell 9.5% to $5.14 billion, ahead of the $4.98 billion forecast by analysts polled by Thomson Reuters, as the company continued its refranchising initiative. On a constant-currency basis, revenue fell 15%, McDonald's said.

McDonald's reported a profit of $1.38 billion, or $1.72 a share, during the quarter, up 13% from a year ago. The company said it made $1.79 a share, omitting a $52 million expense from the new tax law, which impacted earnings by 7 cents a share. McDonald's said foreign-currency translation also boosted its earnings by 8 cents a share.

Analysts were expecting a profit of $1.67 a share.

Some analysts have recently cut their price targets for the company. RBC Capital Markets said it dropped both its earnings estimate on a per-share basis and its price target for McDonald's as it predicts same-store sales will slow. The firm also called the early effect on sales from the value menu "disappointing."

McDonald's has tried to attract customers with offerings such as fresh beef in its quarter pounders, which it plans to offer in contiguous U.S. stores by May. It also plans to make its Happy Meals "more balanced" by 2022. By the end of that year, the company wants at least half of its kids meals to have 600 calories or less. McDonald's said in February that in 20 major markets, 28% of menu-board listed Happy Meals met the planned nutritional goals.

Shares in McDonald's, which have gained 13% over the past year, rose 3.9% in premarket trading.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

April 30, 2018 09:20 ET (13:20 GMT)

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