McDonald’s Corp (NYSE:MCD) reported the fourth-quarter earning on Monday, which beat analysts’ expectations as all-day breakfast boosts sales.
This is the best quarterly report for the company in nearly four years. Sales at U.S. restaurants open at least 13 months was up 5.7% in the fourth quarter, while analysts only expected a 2.7% growth. Sales of global same-store rose 5%, while analysts were expecting growth of 3.2%. The fourth-quarter earning is $1.28 a share, beating a projection of $1.23. Revenue was $ 6.34 billion, compared with a projection of $6.23 billion.
The strong sales is because of the launch of breakfast all day in October, the biggest strategic changed since the company rolled out McCafe beverages nationwide in 2009. After Mr. Easterbrook became Chief Executive Officer last March, he has made numerous changes for the company. For example, he raised wages for workers; allowed more transparency about how its food is made and made structural and management changes. Investors are optimistic that the new CEO will lead a turnaround for the company after its worst slump in more than a decade.
“It looks like they’re definitely under way with the turnaround,” said Bloomberg Intelligence analyst Jennifer Bartashus. “A good chunk of it is the all-day breakfast.”
McDonald’s shares were up 1.8% to $120.51 in early trading.
Mr. Easterbrook called the fourth-quarter results “a testament to the swift changes we made and the early impact of our turnaround efforts”
The CEO also expects the momentum will continue in 2016. The company introduced its new “McPick 2” menu earlier this month. The new menu allows customers to pick two items for a total of $2 from among four choices: mozzarella sticks, small fries and the McDouble and McChicken sandwiches.