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McDonald's: 'Value meals, bacon deals, redesign contribute to Q1 sales lift'

May 1, 2019

McDonald's said Tuesday that its 2019 Q1 comp sales increased 5.4% due in part to bacon-centered and value offerings, along with store improvements, a release said. The performance is well ahead of stock analyst predictions, which were in the 3% range.

The QSR started this year with a bacon giveaway, followed by launching bacon cheesy fries and a bacon Quarter Pounder and Big Mac. Each padded the bottomline, particularly in France, where sales hit an 8-year high.  

Over the first three months of the year, McDonald's also added donut sticks and value deals, along with  new furnishings, menu boards and kiosks that it had been rolling out for months as part of its "Experience of the Future" program, which luanched three ago, Reuters reported. 

Other notable Q1 results, include: 

• Consolidated revenues decreased 4% (increased 2% in constant currencies), reflecting strong comparable sales, partly offset by the impact of the company's strategic refranchising initiative.
• Systemwide sales increased 6% in constant currencies.
• Consolidated operating income decreased 2% (increased 3% in constant currencies).
• Diluted earnings per share of $1.72 was flat with the prior year (increased 5% in constant currencies).

"We remain focused on optimizing execution of the (company's growth) plan, and our recent acquisition of Dynamic Yield further demonstrates our relentless determination to seize opportunities to unlock greater potential and position McDonald's for long-term sustainable growth," CEO Steve Easterbrook said in the release.

In the U.S., first quarter comparable sales increased 4.5%, while operating income fell 5%. In the International-operated segment, Q1 comparable sales grew 6%, although the segment's operating income was flat.