In the United States, comparable sales for the quarter ended March 31, 2018, climbed 2.9 percent on higher average checks resulting from higher menu prices and changes in product mix.
Net income for the quarter advanced 13 percent to $1,375.4 million, or $1.72 per diluted share, compared with $1,214.8 million, or $1.47 per diluted share reported in the first quarter of 2016.
Revenues for the period slipped 9 percent to $5,138.9 million compared with $5,675,9 million reported in the year-ago period due to the company’s ongoing refranchising initiative.
“We continued to build upon the broad-based momentum of our business, marking 11 consecutive quarters of positive comparable sales and our fifth consecutive quarter of positive guest counts,” said Steve Easterbrook, McDonald’s president and CEO. “More customers are recognizing that we are becoming a better McDonald’s, appreciating our great tasting food, fast and friendly service and compelling value as we execute our Velocity Growth Plan.”
McDonald’s reported consolidated operating income increased 5 percent — flat in constant currencies — due to growth in franchised margin dollars which was offset by the impact of the company’s strategic refranchising initiative.
On a segment basis, comparable sales in the International Lead segment increased 7.8 percent in the first quarter. The United Kingdom and Germany primarily drove results. Operating income in the segment jumped 21 percent, or 9 percent in constant currencies on sales-driven improvements in franchised margin dollars.
The High Growth segment reported a first quarter comparable sales increase of 4.7 percent, driven by strong performances in China and Italy. Positive results were reported across most of the segment that were partly offset by continued challenges in South Korea, according to McDonald’s.
First quarter comparable sales in the Foundational markets climbed 8.7 percent on positive sales performance across all geographic regions.
“We’re keeping the customer at the center of everything we do as we continue enhancing their McDonald’s experience,” Easterbrook said. “Guided by our Velocity Growth Plan, we are satisfying the rising expectations customers have for the taste and quality of our food and greater convenience as they visit our restaurants or enjoy meals delivered to their homes and offices. We are confident in the strategies guiding our business for today and for long-term sustained growth into the future.”