Hot products like a “Minecraft”-themed meal helped McDonald’s turn around its sagging sales in the second quarter.
The Chicago burger giant said Wednesday its revenue rose 5% to $6.8 billion in the April-June period. That was higher than the $6.7 billion Wall Street forecast, according analysts polled by FactSet.
Same-store sales, or sales at locations open at least a year, jumped nearly 4%. Analysts had predicted a 1% decline.
McDonald’s shares rose 3% in premarket trading Wednesday.
It was a far different story than the first quarter, when U.S. and global same-store sales slumped and McDonald’s said lower- and middle-income consumers were cutting back on fast food.
But a meal tied to “A Minecraft Movie,” which was offered in 100 countries starting in April, drove customers back to stores. McDonald’s said it sold out of its collectible figures in less than two weeks.
McDonald’s new McCrispy chicken strips also boosted customer traffic after they were added to the menu in May.
Some rivals didn’t fare as well in April-June period. Yum Brands, the parent company of KFC, Taco Bell and Pizza Hut, reported lower-than-expected revenue on Tuesday and said KFC’s same-store sales dropped 5% in the U.S. And last month, Chipotle lowered its full-year same-store sales guidance after a disappointing second quarter that saw same-store sales fall 4%.
McDonald’s net income rose 11% to $2.25 billion in the second quarter. Adjusted for restructuring charges and other one-time items, the company earned $3.14 per share. That was in line with Wall Street’s forecast.
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