McDonald's is back! Consumers and investors are lovin' it.
McDonald's reported fourth-quarter revenues and earnings that easily topped analysts' forecasts, led by a 5.7% jump in same-store sales in the United States.
The company's introduction of its all day breakfast menu in October was the main reason that U.S. sales did so well, as McDonald's CEO Steve Easterbrook explained.
Many McDonald's fans had been calling on the company for years to make Egg McMuffins, hash browns and other early morning treats available at lunch or dinner time. The menu change clearly has paid off. Easterbrook also said that mild weather in the quarter helped.
This was the second consecutive quarter of domestic same-store sales growth for the fast food giant. But McDonald's isn't just staging an impressive comeback in its home market.
Shares of McDonald's (MCD) were up 3% in premarket trading Monday. McDonald's was one of the top stocks in the Dow last year and has held up well so far in what's been a volatile 2016.
Many diners were preferring McDonald's in favor of places like Five Guys, Smashburger and Shake Shac. (SHAK). But since Easterbrook became CEO, McDonald's has added several new burgers -- such as the Pico Guacamole and Buffalo Bacon -- and also gave diners more choices so they could customize the sandwiches. It also launched a new Buttermilk Crispy Chicken sandwich.
It was all part of Easterbrook's strategy to turn McDonald's into a "modern progressive burger company" -- marketing jargon for tastier and fresher food. "We took bold, urgent action in 2015 to reset the business and position McDonald's to deliver sustained profitable growth," said Easterbrook in the company's earnings release Monday.
The company is experimenting with other new menu items this year as well. It recently introduced mozzarella sticks and is considering launches of mac and cheese and sweet potato fries too.
