McDonald’s whips Q1 sales estimates with higher prices, more visits

McDonald’s Corp’s (MCD.N) global comparable sales rose 12.6% in the first quarter, it said on Tuesday, blasting past Wall Street estimates as the burger chain banked on higher menu prices and more customer visits.

The company’s shares rose about 1% in premarket trading, as comparable sales also rose by the same 12.6% for all of McDonald’s geographical segments. Analysts had expected an 8.54% rise globally, according to Refinitiv IBES data.

The Chicago-based company kicked off quarterly earnings reports among publicly traded restaurants. Investors expect to see strong sales but will be listening for warnings about whether consumers will keep dining out as recessionary pressure builds through the rest of the year.

On Monday, the privately held sandwich chain Subway said its global comparable sales were 12.1% higher in the first quarter and that guest visits rose.

McDonald’s total revenue increased 4% from the prior year to nearly $5.9 billion in the three months ended March 31, the company said in an earnings release. That bested estimates of a 1.4% drop year over year to $5.587 billion, according to Refinitiv data.

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