McDonald's beats expectations with Q1 revenues

McDonald's reported quarterly revenues of $5.67bn, up 11% year-on-year and ahead of the $5.59bn expected on the Street, and adjusted earnings per share of $2.28 each.

First-quarter net income came to $1.1bn, or $1.48 on a per-share basis, down from $1.54bn, or $2.05 per share, at the same time a year earlier.

Global same-store sales climbed 11.8% on the back of strong growth in the likes of France and the UK, while digital system-wide sales surpassed $5.0bn for the quarter.

McDonald's also revealed it had spent $27.0m to pay for leases, employee wages, and supplier costs in Russia and Ukraine after suspending operations in both countries due to Moscow's invasion of its neighbour. It also said it will take an additional $100.0m hit against inventory in its supply chain that will likely spoil due to the shuttering of its locations in Ukraine and Russia. When combined, said costs dragged earnings down by a total of $0.13 per share.

The Illinois-based company also stated it had put aside $500.0m, or $0.67 per share, for a potential settlement related to an international tax matter but opted not to provide any further details.

As of 1245 BST, McDonald's shares were up 1.97% at $252.0 each.