McDonald's earnings surge as CEO hails turnaround| MENAFN.COM

Sunday, 25 September 2022 06:47 GMT

McDonald's earnings surge as CEO hails turnaround

(MENAFN- AFP) McDonald's reported a big jump in first-quarter earnings Friday as chief executive Steve Easterbrook said higher sales in all regions showed a turnaround plan was succeeding.

Earnings were $1.1 billion, up 35.4 percent from the year ago period. Revenues dipped 1.0 percent to $5.9 billion.

Easterbrook took over as chief executive in March 2015, following a long run of disappointing sales at the iconic burger chain.

He has since shaken up McDonald's' international business structure, pledging to make the chain "a modern and progressive burger company."

"I'm pleased to report that our turnaround is taking hold," he said. "For the quarter, we generated higher sales, revenues and operating income in constant currencies across all business segments."

Results in the US, which typically garners about a third of McDonald's revenues, were propelled by the launch of the popular all-day breakfast program and the McPick2 promotion, which lets shoppers buy two of McDonald's most popular items for $5.

Global comparable sales rose 6.2 percent, with the US climbing 5.4 percent.

Other especially strong regions included Britain, Australia, Canada and China.

Earnings translated into $1.23 per share, seven cents better than analyst expectations.

Shares of Dow member McDonald's rose 1.8 percent in pre-market trade to $128.00.

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