All-day breakfast, promotion drive McDonald's profit beat

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[April 22, 2016]  By Yashaswini Swamynathan

(Reuters) - McDonald's Corp reported higher-than-expected quarterly sales and profit as its all-day breakfast and promotional offerings attracted more customers to its U.S. restaurants.

Shares of the world's biggest restaurant chain rose 2.4 percent to $128.80 in premarket trading on Friday.

Sales at U.S. restaurants open for at least 13 months rose 5.4 percent in the first quarter. Analysts on average had expected a rise of 4.6 percent, according to research firm Consensus Metrix.

McDonald's All-Day Breakfast program, launched in October under new Chief Executive Steve Easterbrook, has been a hit with U.S. customers looking for cheaper options.

The company also found many takers for its McPick 2 promotional offer, under which a customer could pick any two items from a menu that included its Big Mac burger and Quarter Pounder with Cheese burger for $5.

The popularity of the all-day breakfast concept has increased customer traffic to McDonald's outlets, boosting sales of its non-breakfast offerings, Trefis analysts wrote in a note on Thursday, citing data from research firm NPD Inc.

The net income attributable to McDonald's jumped more than 35 percent to $1.1 billion, or $1.23 per share, in the quarter ended March 31.

Net revenue fell 1 percent to $5.90 billion, the smallest decline in seven quarters.

Analysts on average had expected a profit of $1.16 per share and revenue of $5.82 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Kirti Pandey)

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