McDonald's Sees Savory Results - TheStreet

McDonald's Sees Savory Results

The chain posts an 8.4% jump in June comps and predicts quarterly earnings above analyst targets.
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(MCD) - Get Report

posted an 8.4% jump in June same-store sales and projected second-quarter earnings above Wall Street's expectations.

The fast-food giant's same-store sales rose 4.2% in the U.S., which the company attributed to strength in its breakfast business and overall value and variety in its menu.

Results were stronger abroad. In Europe, same-store sales surged 11.1% in June. They jumped 12.1% in the Asia/Pacific, Middle East and Africa region.

For the second quarter, McDonald's same-store sales rose 7.4% -- its best quarterly same-store sales growth in three years.

The company said it expects a second-quarter loss of 60 cents a share because of its plan to sell 1,600 of its Latin American and Caribbean restaurants to a franchisee. That transaction will cut $1.31 a share from the company's bottom line.

Excluding the effects of that deal, McDonald's predicts earnings of 71 cents a share. Analysts, on average, project earnings of 68 cents a share, according to Thomson Financial.

Last year, McDonald's had second-quarter earnings of 56 cents a share on a comparable basis.