Same-store sales increased 3.9 percent at McDonald’s Corp.’s U.S. business in the second quarter ended June 30, the company said Tuesday, as cheap drinks and premium sandwiches drew customers in the period.
Global same-store sales increased 6.6 percent as the Oak Brook, Ill.-based burger giant generated momentum in many markets around the globe.
The global and domestic same-store sales results were the best in five years at the company.
Thanks to those sales performances, net income increased 28 percent to $1.4 billion, or $1.70 per share, from $1.1 billion, or $1.25. Revenue for the quarter fell 3 percent to just over $6 billion, from $6.3 billion, due to refranchising.
The results bested investors’ expectations and the stock increased 3 percent in early morning trading.
McDonald’s, which going into today had been up 26 percent on the year, was set to hit an all-time high of more than $156 per share. The company has hit a series of all-time highs as investors have expressed faith in the chain’s various domestic and global sales-building efforts.
“We’re building a better McDonald’s, and customers are noticing,” McDonald’s CEO Steve Easterbrook said in a statement.
McDonald’s said its domestic same-store sales increased largely due to its national cold beverage promotion, which includes $1 any size drink, as well as the chain’s new Signature Crafted premium sandwiches promotion.
The results set the stage for additional efforts that the company, and a growing number of investors, believe will continue to generate sales in the coming quarters: Notably, mobile ordering, delivery and kiosks.
McDonald’s is adding mobile ordering at its 14,000 domestic locations this year. It is also quickly adding delivery through a partnership with UberEATS. The company is also working to add kiosks in more restaurants through its Experience of the Future plan.
“I’m confident that we’re on the right path to continue positively impacting sales, guest traffic and customer satisfaction as we work to bring the biggest benefit to the most people in the shortest possible time,” Easterbrook said.
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