McDonald's Q1 Earnings Surpass Street View Aided By Menu Price Increases & Positive Traffic Growth

McDonald's Corp MCD reported first-quarter FY23 sales growth of 4% year-on-year to $5.89 billion, beating the consensus of $5.59 billion.
Global comparable sales rose 12.6%, reflecting strong comparable sales of 12.6% across each segment.
U.S. Comparable sales results benefited from strategic menu price increases and positive comparable guest count growth.
Sales by company-operated restaurants declined 3% Y/Y to $2.2 billion, while sales from franchised restaurants rose 10% to $3.6 billion.
Digital Systemwide sales in the top six markets were over $7.5 billion for the quarter, representing almost 40% of their Systemwide sales.
Total operating costs and expenses were flat at $3.4 billion. Operating income for the quarter rose 10% to $2.53 billion.
Adjusted EPS of $2.63 beat the analyst consensus of $2.33.
"We have refocused on operational excellence through our global Performance and Customer Excellence (PACE) initiative, and we've seen significant customer satisfaction improvement around the world," said CEO Chris Kempczinski.
Outlook: MCD sees FY23 operating margin of 45%; Capital expenditure of $2.2 billion - $2.4 billion.
Globally, the company expects to open about 1,900 restaurants.
Price Action: MCD shares are trading lower by 0.35% at $292.18 on the last check Tuesday.
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