McDonald's (MCD 156.31, +4.46) has climbed 2.9% in pre-market after beating second quarter expectations. The early gain puts the fast food giant on track to challenge its record high of $156.75, which was notched two weeks ago.
The Dow component delivered above-consensus second quarter earnings of $1.73 per share on revenue of $6.05 billion, which declined 3.4% year-over-year, but remained ahead of expectations.
The decline in consolidated revenue was due to the company's strategic refranchising initiative. On a comparable basis, sales increased 6.6%, reflecting gains in all customer segments. On a systemwide basis, sales increased 8.0% due to strong comparable sales performance and restaurant expansion.
Comparable sales in the United States grew 3.9%, fueled by national cold beverage value promotion and the launch of the Signature Crafted premium sandwich line. Segment operating income increased 5.0% thanks to higher sales-driven franchised margin dollars, savings in general & administrative expenses, and higher gains on sales of restaurants.
International comparable sales grew 6.3% thanks to continued momentum in the U.K., a strong showing from Canada and Germany, and positive results across other markets. Segment operating income grew 8.0% due to sales-driven improvements in franchised margin dollars.
Sales in the High Growth segment rose 7.0% due to a strong performance in China and positive results across the rest of the segment. Foundational Markets & Corporate comparable sales grew 13.0%.