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Updated from 8:30 a.m. with details from earnings call.

People in the U.S. are still McLovin' McDonald's (MCD) - Get McDonald's Corporation Report all-day breakfast.

The world's largest fast-food chain on Friday reported first-quarter earnings of $1.23 a share, easily beating the consensus estimate of $1.16. It marked the second straight sizable earnings beat by McDonald's as it has gained sales momentum with the introduction last fall of all-day breakfast and with executives working to cut costs. Total revenue rose 3% year over year to $5.9 billion; analysts' estimates were $5.82 billion.

Shares rose slightly in midday trading.  

Without question, McDonald's business in the U.S. -- it's largest market where it operates more than 14,000 restaurants -- stole the show in the quarter. Same-store sales rose 5.4% propelled by interest in all-day breakfast and the company's new " McPick 2" value menu that launched earlier this year.  All parts of the day saw increased sales, with lunch hours leading the way. 

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The company's U.S. business has now posted two consecutive quarters of same-store sales growth above 5%.

"U.S. guest counts were positive, and that's the ultimate sign of the strength of the business," said McDonald's CEO Steve Easterbrook on a call with analysts. Easterbrook added, "Consumers in the U.S. are noticing improvement [in our food quality and service] -- our customer satisfactions scores increases 6% year over year."

McDonald's U.S. business outperformed arch rival Taco Bell, the division of Yum! Brands (YUM) - Get Yum! Brands, Inc. Report  that notched a 1% same-store sales increase in the first quarter. Wall Street expected a 3.1% sales gain for Taco Bell. 

Taco Bell's lackluster quarter was in large part due to increased competition from burger players such as McDonald's. 

"Taco Bell faced increased value pressure from the burger chains in the first quarter," said Yum! Brands interim Chief Financial Officer David Russell to analysts on a conference call. Russell added, "Same-store sales improved throughout the quarter, and we remain confident in achieving 3% same-store sales growth for the year, with a stronger second half than first half."

But given Taco Bell's high-profile new product launches in the quarter that went head to head with McDonald's all-day breakfast, the sales slowdown is a concern.