McDonald’s surprised even the most bullish investors Monday, reporting stronger-than-expected gains in earnings thanks largely to its introduction of All Day Breakfast.
Same-store sales, the numbers for stores open at least a year, rose 5.7 percent in the United States in the quarter that ended Dec. 31, and 5 percent on a global basis. It was the strongest gain in such sales in almost four years.
“We begin 2016 in a much better place than we were 12 months ago,” Steve Easterbrook, chief executive of McDonald’s, said during a conference call with investment analysts.
Profit in the fourth quarter climbed a healthy 10 percent to $1.2 billion, or $1.31 a share, from $1.1 billion, or $1.13 a share, in the same quarter in 2014. The company also benefited from raising its prices and cutting costs, as well as unseasonably warm weather at the end of last year.
The impact of higher wages that the company is paying employees in the stores it operates were offset by lower commodity prices, said Kevin Ozan, chief financial officer. McDonald’s shares ended the day at $119.20, a gain of about 0.7 percent.