McDonald's Q1 earnings top estimates amid strong diner demand, price hikes

Investing.com -- McDonald’s Corporation (NYSE:MCD) posted better-than-expected income and sales in the first quarter, thanks to resilient customer demand and price increases that helped offset elevated expenses.

The global burger chain reported a 12.6% jump in comparable sales during the three months ended on March 31, which the Big Mac maker attributed to elevated menu prices, as well as growth in its digital operations. Bloomberg consensus estimates had called for a sales rise of 8.19%.

Despite the higher prices and broader inflationary pressures that have been threatening to weigh on broader economic activity, diners still flocked to the group's restaurants, McDonald's said.

"Amidst a challenging operating environment, customer demand for McDonald’s Brand remains strong,” said president and chief executive officer Chris Kempczinski in a statement.

Total revenues also moved higher by 4.1% year-on-year to just under $5.90 billion, topping estimates of $5.57B. However, total operating costs and expenses inched up to $3.37B, while it also booked a pre-tax restructuring charge of $180 million.

Operating profit subsequently came in at $2.53B, a gain of 10% compared to the same period last year and above projections of $2.45B. Adjusted earnings per share of $2.63 also beat expectations of $2.33.

Shares in McDonald's were in the green in premarket U.S. trading on Tuesday.