McDonald’s reported higher-than-expected sales in the first quarter as store traffic grew despite higher prices.
Global same-store sales rose 12.6% compared to the January-March period last year, the Chicago burger giant said Tuesday. That was well above the 8.7% increase that Wall Street had been forecasting, according to analysts polled by FactSet.
Marketing campaigns __ including a Valentine’s Day meal promotion with rappers Offset and Cardi B __ and higher delivery sales boosted the chain's U.S. performance. The company also raised prices on some items to account for inflated costs for food and paper.
Revenue rose 4% to nearly $5.9 billion in the first quarter, which also topped analyst projections of $5.6 billion.
Despite the super-sized results, McDonald’s laid off several hundred corporate workers earlier this month in an effort to speed up innovation and decision-making. McDonald’s booked a restructuring charge of $180 million __ or 18 cents per share __ during the first quarter to account for severance payments and the closure of some regional offices.
Without that one-time charge, McDonald’s earned $2.63 per share, which is 30 cents better than expected.