McDonald's (MCD) jumps as EPS doubles on price increases

McDonald’s (NYSE: MCD) shares rose 2.6% in pre-open trading after the company beat on the top and bottom line in the second quarter on strong same store sales.

The fast food giant reported that global comparable sales increased 11.7% for the quarter, versus the consensus calling for an 8.88% increase.

U.S. comparable sales rose 10.3%, the International Operated Markets segment increased 11.9%, and the International Developmental Licensed Markets segment increased 14.0%.

U.S. sales gains benefited from strategic menu price increases and positive guest counts, the company said.

The company reported that EPS surged 97% to $3.15, versus the consensus of $2.75. Revenues rose 14% in constant currencies to $6.5 billion, versus the consensus of $6.29 billion.

"Our second quarter results reflect consistently strong execution of our Accelerating the Arches strategy, with global comparable sales growth of 11.7% and double-digit comparable sales growth across each of our segments," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations. While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow."

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