-- McDonald's (MCD) reported better-than-expected first-quarter results on Thursday, while comparable sales rebounded more than market estimates despite what the company described as a "challenging" environment.
The fast-food giant's adjusted earnings came in at $2.83 a share for the March quarter, up from $2.67 the year before, topping the consensus on FactSet for $2.74. Revenue increased 9% to $6.52 billion, surpassing the Street's view for $6.47 billion.
The stock was up 3.2% in the most recent premarket activity.
Comparable sales rose 3.8%, rebounding from a 1% decline in the prior-year quarter. The average analyst estimate on FactSet was for growth of 3.7%.
"McDonald's delivered this quarter," Chief Executive Chris Kempczinski said in a statement. "Our 6% global system-wide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment."
US same-store sales grew 3.9%, mainly buoyed by positive check growth, according to the company.
UBS Securities said earlier in the week it expected McDonald's to record a 3.5% gain in US comparable sales versus consensus for a 4% increase, with momentum seen moderating into the ongoing quarter amid softer trends due to high fuel prices and macro pressures.
Same-store sales advanced 3.9% in the international operated markets, led by the UK, Germany and Australia. In the international developmental licensed markets, the metric moved 3.4% higher, led by Japan, McDonald's said.
Total operating costs and expenses rose to $3.56 billion from $3.31 billion last year.
On Wednesday, Restaurant Brands International (QSR) posted first-quarter results above Wall Street's estimates, while the Burger King parent's comparable sales growth was in line with consensus. Last week, KFC and Taco Bell owner Yum Brands (YUM) reported better-than-expected first-quarter results.