McDonald's US sales rise but net income falls

Total revenue also fell, about 4 per cent to $4.96bn, due to its move to franchise a majority of its restaurants, the company said

A McDonald' restaurant in Los Angeles. The company's US sales have risen. Reuters

McDonald's reported a better than expected rise in quarterly sales at established US restaurants on Tuesday, boosted by the burger chain's latest promotions and menu additions, sending its shares up about 4 per cent.

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

The company is modernising 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 per cent growth in same-store sales in the United States, beating the 3.03 per cent rise expected by analysts, according to Refinitiv IBES. The beat was also its first in four quarters.

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

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

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