McDonald’s Corporation (NYSE:MCD) shares hit a new 52-week high of $141.99 on Tuesday after the company posted better-than-expected earnings and revenue for the first quarter. The company took several initiatives, such as all-day breakfast and promotions on its famous Big Macs, to lure more customers.
Under the supervision of CEO Steve Easterbrook, MCD has closed underperforming restaurants, commenced all-day breakfast and started using healthy chicken raised without antibiotics. The company is also introducing higher-end signature crafted sandwiches in the U.S.
A number of analysts have lifted their price targets for MCD stock since it started testing mobile ordering in Monterey and Salinas last month. Easterbrook said on a conference call that McDonald’s is expanding that test to other areas including Washington, D.C., and Chicago. The company along with its partner UberEats will introduce delivery services in new markets this quarter following a successful test in Florida, he added.
Overall, McDonald’s posted net income of $1.21 billion, or $1.47 a share for the three month-period ended March 31, up 8 percent from the same period last year, and also above consensus forecast of $1.33 a share.
Revenue in the first quarter slipped 3.9 percent to $5.68 billion. Analysts on average were looking for revenue of $5.53 billion.
The company’s operating expenses in the quarter fell about 12 percent.
Sales at U.S restaurants open for more than 1 year jumped 1.7 percent in the first quarter. Analysts polled by Consensus Metrix were looking for a surge of 1.3 percent.
McDonald’s jumped 5.57 percent to $141.70 in the previous trading session. MCD shares have performed well so far this year as the stock surged more than 16 percent year-to-date. The 52-week range of the stock is $110.33-$141.99. The company’s market cap is $115.73 billion.