McDonald's first quarter sales boosted by higher prices

By AP News

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McDonald’s reported higher-than-expected sales in the first quarter as store traffic grew despite higher prices

Earns McDonalds

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.

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Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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