The company saw sales increase both in the U.S. and globally.
McDonald’s shares were up in premarket trading on Tuesday morning on the heels of a positive first-quarter earnings report. The company reported profits of $1.72 per share.
Globally, the company saw same-store sales go up 5.4 percent in the past year, which was higher than expected. Previously, this figure had been holding steady at about four percent.
In the U.S. alone, sales rose by 4.5 percent and they increased by 6 percent globally. In its press release, company leaders said the global results were primarily driven by France and the U.K.
Things are looking up for McDonald’s
McDonald’s is currently unveiling a new initiative aimed at upgrading its stores and technology. Named the Experience of the Future initiative, it should provide a better in-store and online experience for customers.
However, McDonald’s has hit some rough spots in the past year. The company has dealt with increased competition from other fast food restaurants and customer traffic has subsided somewhat. In January, the company said it was working to remain competitive in its breakfast business and to increase drive-thru traffic.
McDonald’s has worked hard to update its restaurant locations and add in self-ordering kiosks. But this has frustrated many McDonald’s franchise owners and caused a rift between these individuals and the company’s corporate headquarters.
In March, the company announced that it planned to buy the AI company Dynamic Yield. Dynamic Yield has technology that can evaluate how busy a restaurant is and recommend items that are easier to make and serve.
It’s still early but these positive results bode well for McDonald’s for the rest of 2019. The company plans to spend nearly $2 billion dollars on store upgrades though it remains to be seen whether this will be enough to increase customer traffic in the U.S. But the addition of mobile ordering and home delivery through UberEats should help.
These technology investments will mean that the company will have higher expenses in the coming year. McDonald’s is forecasting that its commodity costs in the U.S. will increase by up to three percent.