Bacon drives McDonald's same-store sales beat
- McDonald's bacon promotion drove higher sales for the quarter, beating analyst expectations.
- The company's shares were up 3% early Tuesday, despite missing earnings expectations for the quarter.
- Watch McDonald's trade live.
McDonald's rose more than 3% early Tuesday after the fast-food chain beat analyst expectations for same-store-sales growth, but missed on earnings . The first-quarter sales beat was driven in part by increased promotional events, including a "Bacon Event" and the introduction of Donut Sticks.
Same-store sales rose 4.5%, beating the 3% that analysts surveyed by Bloomberg were expecting. Meanwhile, first-quarter earnings came in at $1.72 a share, missing the $1.75 that was anticipated.On January 29, the company launched its "Bacon Event," where for one hour participating McDonald's gave away a side of bacon with any order. The company also added bacon, for a limited time, to three of its "Classic" products including the Big Mac, Quarter Pounder and Cheesy Fries.
"Bacon with an order of Hotcakes?" the company said at the time. "Go for it. Bacon with a Hot Fudge Sundae? Have at it. Bacon with a Filet-O-Fish? Sure!"
The company also noted its strength in international same-store sales, which increased by 6%. The results were driven by particular strength in the UK and France.
"We remain focused on running better restaurants and elevating the experience for our customers by providing convenience on their terms through delivery, Experience of the Future, and our evolving digital channels,"said CEO Steve Easterbrook
Including Tuesday's gain, McDonald's stock is up 15% this year.