McDonald’s earnings beat estimates as chain’s value push pays off

McDonald's on Wednesday reported quarterly earnings and revenue that topped analysts' expectations as its value push wins back customers.

"By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores," CEO Chris Kempczinski said in a statement.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $3.12 adjusted vs. $3.05 expected
• Revenue: $7 billion vs. $6.84 billion expected

The fast-food giant reported fourth-quarter net income of $2.16 billion, or $3.03 per share, up from $2.02 billion, or $2.80 per share, a year earlier.

Excluding restructuring charges and other items, McDonald's earned $3.12 per share.

Net revenue climbed 10% to $7 billion.

The company's same-store sales increased 5.7%, fueled by strong growth in its home market. Wall Street was projecting same-store sales growth of 3.9%, according to StreetAccount estimates.

U.S. same-store sales increased 6.8%. In the year-ago period, its domestic same-store sales shrank 1.4% after an E. coli outbreak weeks into the quarter weighed on traffic. McDonald's credited buzzy promotions — like its Grinch meal and Monopoly — that boosted both traffic and sales this year. The chain also expanded its value offerings by relaunching Extra Value Meals, which offer a roughly 15% discount on combo meals.

Outside the U.S., McDonald's saw same-store sales growth in nearly all markets. The company's international operated markets segment, which includes Germany and Australia, reported same-store sales growth of 5.2%. Its international developmental licensed markets division saw same-store sales rise 4.5%.