McDonald’s (MCD) Stock Rises After Q1 Beat Despite Cautious US Consumer

TLDR

• Q1 revenue rose 9% to $6.52 billion, beating analyst forecasts
• Adjusted EPS of $2.83 beat expectations of $2.74
• US same-store sales grew 3.9%, just missing the 4.2% estimate
• Global comparable sales up 3.8%, recovering from a 1% decline a year ago
• MCD stock rose ~3% in premarket trading following the results

McDonald’s (MCD) stock jumped roughly 3% in premarket trading Thursday after the company reported first-quarter revenue of $6.52 billion, up 9% from a year ago and ahead of the $6.47 billion analysts expected.

McDonald’s Corporation, MCD

Adjusted earnings per share came in at $2.83, topping the $2.74 consensus estimate. Net profit rose 6% to $1.98 billion.

The results show McDonald’s value-focused strategy is gaining traction, even as the broader consumer environment stays under pressure.

US same-store sales grew 3.9% in the quarter. That came in just below Wall Street’s 4.2% expectation, but still marks solid growth for the chain.

CEO Chris Kempczinski called the operating environment “challenging.” Higher fuel and grocery costs have left consumers increasingly cautious about spending.

Traffic data from Placer.ai showed an uneven quarter in the US. Same-store visits dropped 1.3% in January due to winter storms, bounced back 3.8% in February, then slipped to just 1.2% growth in March.

Lower-income customers are ordering simpler, single-item meals rather than full combos. That shift has been a headwind for the broader fast-food sector.

Value Meals and Menu Moves

McDonald’s has leaned hard into affordability. The chain recently cut combo meal prices and launched new cold drinks this month, positioned as cheaper alternatives to the premium beverages that have worked well for chains like Starbucks.

During the quarter, McDonald’s also launched its Big Arch burger. A video of CEO Kempczinski taking a bite went viral, sparking a response from Burger King, whose US and Canada president promoted the chain’s upgraded Whopper.

Burger King reported its biggest quarterly same-store sales jump in roughly two years on Wednesday.

Global Picture

Globally, McDonald’s comparable sales rose 3.8%. That narrowly missed the analyst estimate of 3.95%, but it’s a sharp turnaround from the 1% decline posted in the same period last year.

Several US restaurant chains have flagged weaker sales recently. Wingstop and Domino’s both cited pressure from higher gasoline prices linked to the Iran conflict.

McDonald’s isn’t immune to those pressures, but its scale and value positioning have helped it hold up better than many peers.

The chain continues to roll out promotions and limited-time offers to keep traffic moving. Whether that momentum holds into Q2 will depend largely on how consumer budgets hold up through the summer.

Adjusted EPS of $2.83 beat the $2.74 estimate, and total revenue of $6.52 billion cleared the $6.47 billion forecast, according to LSEG data.

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