McDonald’s turns it around

McDonald’s on Friday reported another strong season of higher profit and better-than-expected U.S. sales growth, thanks to the continued boost of all-day breakfast and its newest value promotion, McPick 2.

All-day breakfast, launched in October, has proven to be the driver for a desperately needed turnaround. The McPick 2 promotion, initially intended as an alternative to the dollar menu as food prices rose, has also proven to be a sales spark in recent months. The deal began as a 2-for-$2 deal but now features classic items like the Big Mac and Quarter Pounder with Cheese and costs $5 for two items.

The company said those two promotions helped drive sales at established restaurants in the U.S. up 5.4 percent in the first quarter. Established-store sales don’t include stores open less than 13 months and are considered a key gauge of a restaurant company’s health.

The world’s largest burger chain earned $1.1 billion, or $1.23 per share in the first three months of the year, compared with $811.5 million, or 84 cents per share, a year ago.

Revenue fell 1 percent to $5.9 billion, hurt by currency translation.

— From wire reports