McDonald's Corp. said on Monday it expects to report quarterly earnings above Wall Street estimates on its strongest quarterly sales in three years.
The world's largest restaurant chain operator said it expected to earnings of 71 cents per share before costs related to the sale of businesses in Latin America.
Analysts, on average, had been expecting earnings of 67 cents a share, excluding one-time items, according to Reuters Estimates.
In April, McDonald's said it would sell about 1,600 restaurants in Latin America and the Caribbean to a franchisee. Including the impact of this sale, the company will post a net loss of 60 cents a share in the second quarter.
Second-quarter sales at restaurants open at least 13 months rose 7.4 percent, the company said.
The world's largest restaurant company also said June sales at outlets open at least 13 months rose 8.4 percent, helped by strong breakfast sales in America.
Three Wall Street analysts' June same-store sales estimates ranged from a rise of 4 percent to an increase of 7 percent, according to research notes.
U.S. same store sales rose 4.2 percent, with strength continuing in its breakfast business. The three analysts forecast U.S. same-store sales rising 3.5 percent to 5 percent.
Same-store sales rose 11.1 percent in Europe and 12.1 percent in Asia/Pacific, Middle East and Africa, the company said.
McDonald's shares rose more than 1 percent to $52.75 in premarket electronic trading from Friday's New York Stock Exchange close of $51.91.
(Additional reporting by Nichola Groom)