McDonald's Corp on Monday said sales at its hamburger restaurants open at least 13 months rose 2.8 percent in April, meeting the high end of expectations, as strong breakfast sales in the United States offset weakness in Europe. Same-store sales, a key retail measure, rose 4.7 percent in McDonald's flagship US market and fell 0.7 percent in Europe, its No 2 market. US sales were boosted by a breakfast promotion, including the addition of a stronger coffee blend, and a 1.5 percent price increase taken in the first quarter, Banc of America analyst Andrew Barish said in a note to clients.
The company blamed the decline in Europe on a shift in the Easter holiday to the March period as well as a "challenging operating environment."
European business has also been hurt by ongoing economic weakness in Germany.
Wall Street analysts had been expecting an overall sales rise of between 0.5 percent and 3 percent for the month, according to research reports. US results were slightly ahead of expectations, while Europe's decline was at the low end of analysts' range of estimates.
Sales at McDonald's US restaurants have boomed in the last two years thanks to new menu items like meal-sized salads and fried chicken strips as well as initiatives like later hours and cashless payments.
To help drive sales, the company last week introduced a new Fruit 'n Walnut salad that will be supported by a national advertising campaign.
Same-store sales were up 1.6 percent in McDonald's Asia-Pacific, Middle East and Africa unit as strength in Australia, Japan and Taiwan offset weakness in China, the company said.
McDonald's shares were up 39 cents, or 1.3 percent, at $29.76 Monday morning on the New York Stock Exchange.
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