Menu price rises in the US helped McDonald’s counter the costs of implementing President Donald Trump’s massive tax reforms.
The company – reputedly one of the President’s favourite restaurant chains – said its earnings per share rose 17pc to $1.72 (£1.25) but would have been even higher at $1.79 had it not been for unavoidable charges linked to the Tax Cuts and Jobs Act.
The legislation aims to reduce corporation tax from 35pc to 21pc in the US and McDonald’s said the implementation cost it roughly $52m in the first three months of the year. This came on top of the $700m figure the company had to pay last year caused by moving foreign earnings back home.
The British chief executive of the American chain, Steve Easterbrook, said the group had secured 11 consecutive quarters of revenue growth in spite of the fact it had implemented price rises in its biggest market, the US.
The British boss of McDonald’s Steve Easterbrook says the company has now had 11 consecutive quarters of sales growth
While global comparable sales rose 5pc, its statutory revenue dropped 15pc to $5.13bn as it reduced the amount of stores it owns globally and increased franchising.
The restaurant chain does not give a detailed geographical breakdown of how it is performing but said like-for-like sales in its ‘international lead’ division, which includes the UK, were up 7.8pc in the quarter thanks to a strong showing from the UK and Germany. Operating income rose 9pc on a constant currency basis partly because of its investment in refurbishing its restaurants.
The boss of the UK division, Paul Pomroy, said his part of the company now boasted 12 consecutive years of sales growth.
He said more than 80pc of the UK’s McDonald’s restaurants had been revamped, including new kitchens and self-order screens.
The company’s trial of delivery has also proved a success with more than one million customers getting their Big Mac delivered in spite of the company only offering the service from 270 of its 1,270 restaurants.
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