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Shares of the burger chain rose about 2.6% to $253.49 in
premarket trading.
Rising wages due to a tight labor market and soaring costs of
ingredients such as chicken and beef have forced U.S. restaurant
chains to hike prices, which have seen little resistance from
consumers so far.
McDonald's investments in delivery services, digital restaurant
kiosks and drive-thru lanes have also given it an edge over
smaller fast-food chains, which have been forced to cut down on
operating hours due to staff shortages.
The introduction of a loyalty program late last year, letting
subscribers on McDonald's app earn points that can be redeemed
on burgers and fries, has also helped drive a 3.5% increase in
first-quarter comparable sales in the United States, its biggest
market.
Analysts expected an increase of 3.3%, according to Refinitiv
IBES.
Global comparable sales rose 11.8%, beating estimates for 8.2%,
as COVID-19 restrictions were eased in some overseas markets.
The company lost $100 million due to the likely disposal of
inventory in its supply chain after it decided in early March to
shutter restaurants in Russia and Ukraine.
It also paid out $27 million for staff salaries, leases and
suppliers in the region.
McDonald's, one of the first major Western brands to enter
Russia after the fall of the Soviet Union, previously said the
closure of restaurants in the region would cost $50 million a
month, including lost revenue and wages payments.
Total revenue increased 11% to $5.67 billion, beating
expectations for $5.59 billion.
Excluding costs to support the company's business in Russia and
Ukraine as well as other one-time expenses, McDonald's earned a
profit of $2.28 per share, besting estimates of $2.17.
(Reporting by Hilary Russ in New York and Uday Sampath in
Bengaluru; Editing by Anil D'Silva and Bernadette Baum)
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