McDonalds’ Q1 sales boosted by its all-day breakfast menu

In November, credit ratings agency Fitch warned that the breakfast-driven rebound the chain is experiencing won’t last forever. While that prediction still may prove correct someday, Fitch can’t claim victory just yet: McDonald’s reported better-than-expected first quarter same-store sales Tuesday, thanks in no small part to a continued boost from the most important meal of the day.

McDonald’s reported Tuesday that its global same-store sales increased 4% during its first fiscal quarter of 2017. “There’s a sense of urgency across the business as we take actions to retain existing customers, regain lapsed customers and convert casual customers to committed customers,” McDonald’s president and CEO Steve Easterbrook said in a statement Tuesday morning.

The growth in same-store sales didn’t completely translate to gangbuster top-line sales, with first quarter revenue ticking down 4% to $5.68 billion (a figure that nonetheless managed to come in ahead of the $5.5 billion Wall Street consensus). McDonald’s explained the dip by pointing to the refranchising effort that is a part of its broader turnaround plan, and the costs associated with that effort.

Net income for the quarter, meanwhile, grew 8% to $1.2 billion, resulting in earnings of $1.47 per share — a figure that came in well ahead of the Street’s $1.33 per-share consensus.

“Our efforts to build a better McDonald’s are yielding meaningful results with continued positive momentum and a strong start to 2017 that includes positive comparable sales across all segments, higher global guest counts and enhanced profitability,” Easterbrook continued. “We’re challenging ourselves to identify and pursue initiatives that can bring the biggest benefit to the most customers in the shortest possible time. I’m confident that we’re on the right path and well-positioned to unlock incremental growth and deliver against our growth plan for 2017 and beyond.”