McDonald's Corp reported an over 35 percent jump in quarterly profit, beating analysts' estimates, as all-day breakfast and promotional offerings attracted more customers to its U.S. restaurants.
Shares of the world's biggest restaurant chain rose nearly 2 percent in early trading Friday.
The quarterly gain marks the third straight increase for the world's largest burger chain. McDonald’s is working to regain customers in a massive turnaround effort as it fends off competition from newer fast-casual dining chains. The company introduced an all-day breakfast menu last fall, and it is looking to revamp its other offerings, including trying out different versions of its Big Mac.
Sales at McDonald's U.S. restaurants open for at least 13 months rose 5.4 percent in the first quarter ended March 31. The growth was faster than the 4.6 percent expected by analysts, according to research firm Consensus Metrix.
McDonald's All-Day Breakfast program, launched in October under new Chief Executive Steve Easterbrook, has been a hit with U.S. customers looking for cheaper options.
The company also found many takers for its McPick 2 promotional offer, under which a customer could choose for $5 any two items from a menu that included the Quarter Pounder with Cheese and Big Mac burgers.
Easterbrook, who took over on March 1 last year, has taken steps such as simplifying McDonald's menu and improving service to help the company woo back customers lost to rivals including Shake Shack Inc and Wendy's Co.
McDonald's global comparable sales rose 6.2 percent, the highest growth in three quarters, partly due to strength in "high growth markets" such as China and Russia.
The net income attributable to McDonald's rose to $1.1 billion, or $1.23 per share, beating the average analyst estimate of $1.16 per share, according to Thomson Reuters I/B/E/S.
Net revenue fell 1 percent to $5.90 billion, but topped the average estimate of $5.82 billion. The revenue decline was the smallest in seven quarters.
Excluding the impact of a strong dollar, revenue rose 3 percent.
McDonald's, which expects to refranchise 4,000 stores by 2018 and aims to become 95 percent franchised over the long term, said total operating costs fell nearly 10 percent.
The company's shares were lately trading at $128. Up to Thursday's close, the stock had risen 27 percent since Easterbrook replaced Don Thompson as CEO.
Data from Reuters were used to report this story.