(Bloomberg/Bloomberg via Getty Images)
McDonald's said worldwide sales at its existing restaurants rose 4% during the third quarter, reflecting notable recoveries in the U.S. and China.
Shares popped more than 7% in pre-market trading.
The fast food chain is in the midst of a turnaround plan meant to revive a years-long sales slump and is rolling out initiatives like all-day breakfast and an increased focus on franchising.
During the quarter, U.S. same-store sales rose for the first time in two years, edging up nearly 1%. McDonald's pointed to the introduction of a new buttermilk chicken sandwhich and breakfast items as having helped. While all-day breakfast is currently being served nationwide, it just began this month and therefore wasn't a factor in the results.
McDonald's, which recently introduced a new reporting structure, said same-store sales for its "high growth markets" increased 8.9%, driven by "very strong" sales performance in China and positive sales in most other markets. In assessing its sudden strength in China, where it has had trouble winning back customers since since a food safety scandal with a meat supplier over a year ago, McDonald's pointed to its emphasis on value and breakfast offerings during the quarter.
"I am encouraged by our operating performance for the quarter, with positive comparable sales across all segments, including the U.S., as well as sales recovery in China following the prior year supplier issue," said CEO Steve Easterbrook in a statement.
Results were also good in its "international lead markets," where sales rose 4.6%, led by strength in Australia, the U.K. and Canada.
The Golden Arches said it expects more of the same, and same-store sales should be positive across the board again in the fourth quarter.
McDonald's beat analyst estimates on both the top and bottom line. Revenue fell 5% to $6.62 billion, but topped estimates of $6.41 billion and would have risen 7% if not for currency headwinds. Net income rose to $1.31 billion, or $1.40 per share, up from $1.07 billion, or $1.09 per share, a year ago. This surpassed the $1.28 per share analysts were looking for.
Shares are up 10% this year and popped over 7% to $110.37 on Thursday morning.
