McDonald's sees US sales rebound in improved second quarter showing

McDonald's Corp on Wednesday said like-for-like sales picked up in the second quarter of the financial year, including a return to growth in the key US market.

In response, shares in the Chicago, Illinois-based fast food chain rose 3.6% in premarket trading to USD309.45 on Wednesday.

McDonald's said net income increased 11% to USD2.25 billion in the quarter to June 30 from USD2.02 billion a year prior, taking half-year net income to USD4.12 billion, up 4.3% from USD3.95 billion.

Revenue increased by 5.4% to USD6.84 billion from USD6.49 billion in the quarter, or by 1.1% to USD12.80 billion in the half year from USD12.66 billion a year ago.

McDonald's said global comparable sales increased 3.8% in the quarter, with broad-based growth across all segments, with US LFL sales up 2.5%, reversing two straight quarters of domestic declines.

In the first quarter, global comparable sales fell 1.0%, including a 3.6% slump in the US alone as McDonald's said consumers grappled with uncertainty.

International operated markets LFL sales increased 4.0% in the quarter and International developmental licensed markets grew 5.6%, the firm said.

Chief Executive Chris Kempczinski said sales growth reflected "compelling value, standout marketing, and menu innovation".

Earnings per share per diluted share climbed 12% to USD3.14 from USD2.80 in the quarter and by 5.1% to USD5.74 from USD5.46 for the half year.

The results included pre-tax charges of USD43 million primarily related to restructuring charges associated with McDonald's strategic initiative 'Accelerating the Organization'.