McDonald's famed "golden arches."Charles Rex Arbogast/The Associated Press
McDonald's Corp. posted stronger-than-expected global sales at established restaurants as demand in Europe came in far above Wall Street estimates.
"Europe was the concern, and Europe blew it through," Oppenheimer analyst Matt DiFrisco said. "That will give people a little bit of increased confidence."
Same-store sales in Europe jumped 7 per cent in January, well past the 3.7 per cent analysts had expected.
Europe is McDonald's largest market for sales, contributing about 40 per cent of revenue.
Shares of McDonald's rose nearly 1 per cent in trading before the market opened.
Mr. DiFrisco, who has a "perform" rating on the shares, said investors had been concerned about Europe because of the austerity measures in that region, but it was still seeing the benefit of new products from McDonald's.
Worldwide January sales at restaurants open at least 13 months were up 5.3 per cent, above the 4.4 per cent analysts had expected.
In the United States, where high unemployment has hurt fast-food chains, sales rose 3.1 per cent, below the 4.4-per-cent gain analysts had expected. This market accounts for about 35 per cent of McDonald's revenue.
Sales in the Asia/Pacific, Middle East and Africa unit rose 5.2 per cent, above the 4.6-per-cent increase analysts had expected.