-=McDonald's (MCD) reported earnings on Mon 30 Apr 2018 (b/o)

McDonald's beats by $0.12, beats on revs 

• Reports Q1 (Mar) earnings of $1.79 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $1.67; revenues fell 9.5% year/year to $5.14 bln vs the $4.97 bln Capital IQ Consensus due to the impact of the Company's strategic refranchising initiative; systemwide sales increased 7% in constant currencies.
• Global comparable sales increased 5.5%vs. +5% ests and global comparable guest counts increased 0.8%. "11 consecutive quarters of positive comparable sales and our fifth consecutive quarter of positive guest counts."
  • In the U.S., first quarter comparable sales increased 2.9% driven by growth in average check resulting from menu price increases and product mix shifts. Operating income for the quarter increased 5%, reflecting higher franchised margin dollars and higher gains on sales of restaurant businesses, partly offset by lower Company-operated margin dollars.
  • Comparable sales for the International Lead segment increased 7.8% for the quarter, reflecting positive results across all markets, primarily driven by the U.K. and Germany. The segment's operating income increased 21% (9% in constant currencies), fueled by sales-driven improvements in franchised margin dollars.
  • In the High Growth segment, first quarter comparable sales increased 4.7%, led by strong performance in China and Italy and positive results across most of the segment, partly offset by continued challenges in South Korea.
  • In the Foundational markets, first quarter comparable sales rose 8.7%, reflecting positive sales performance across all geographic regions.