Introducing breakfast all day helped McDonald's expand same-store sales in the U.S. for the first time in two years. Fred Katayama reports.
The turnaround is showing signs of sizzle at McDonald's. Tinkering with Egg McMuffin's recipe and serving breakfast all day helped McDonald's grow its quarterly same store sales in the U.S. for the first time in two years. Sales rose even faster globally, especially in China, where a food safety issue had pummeled results last year. McDonald's profit jumped 23 percent. Investors have been betting on a turnaround after Steve Easterbrook took over as CEO in March. McDonald's has made many changes in an attempt to win back young customers - making breakfast available 24 hours, shrinking the menu, emphasizing fresh ingredients, and allowing regional markets to develop their own products such as the organic burger in Germany. Sterne Agee analyst Lynne Collier said, "The fact they were able to turn around costs in every major segment is very impressive ... The primary upside to us is international performance." As a result, its stock has surged more than 9 percent this year, far outstripping those of rival Wendy's and even Millennial favorite Chipotle. With profit and revenue crushing estimates, investors gobbled up more shares in early trading.