McDonald's Profit Gets Boost From Coffee
NEW YORK (
) --
McDonald's
(MCD) - Get Report
posted better-than-expected first-quarter profit, receiving a boost from its coffee sales.
During the quarter, the fast-food chain earned $1.09 billion, or $1 a share, compared with $979.5 million, or 87 cents, in the year-ago period.
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Excluding tax charges related to closures in Japan, McDonald's actually earned $1.03 a share, topping Wall Street's forecast of 96 cents.
McDonald's revenue shot up 10.5% to $5.61 billion, while sales at restaurants open at least a year grew 4.2%. Same-store sales in the U.S. increased 1.5% during the quarter.
McDonald's further expanded its McCafe business during the quarter by introducing lower-priced frappes, putting it in even closer competition with
Starbucks
(SBUX) - Get Report
.
Starbucks is scheduled to report its quarterly results after-market today. Analysts are calling for a profit of 25 cents a share on revenue of $2.41 billion.
-- Reported by Jeanine Poggi in New York.
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