Fast food giant McDonald’s has reported better-than-expected profits for the first quarter of 2011, with sales up in the US, Europe and Asia. According to scrutinizing figures, First quarter profits were $1.2bn, up 10.9% from a year ago, with revenues rising 9% to $6.1bn. McDonald’s global analogous sales were 4.2% higher.
In the US, which accounts for about a third of its revenue, sales were helped by demand for its McCafe drinks and its fruit and maple oatmeal .Chicken McNuggets and the Chipotle BBQ Bacon Angus burger also proved popular. McDonalds in a statement said first-quarter profit rose 11 percent, fueled by U.S. demand for coffee and burgers, and predicted further increases in food costs this year.
Net income advanced to $1.21 billion, or $1.15 a share, that’s according to McDonalds. Analysts on average predicted $1.14. Items such as beverages and the Chipotle BBQ Bacon Angus burger helped lure people in the U.S is high in demand and sales. McDonald’s and other restaurant chains are weighing price increases as surging expenses for supplies such as beef, pork and eggs cut into productivity.
McDonald’s expects food operating cost to rise as much as 4.5 percent in the U.S. In February, the company forecasted an increase of as much as 2.5 percent in the U.S.
McDonald’s fell $1.49, or 1.9 percent, to $76.91 at 4 p.m. in New York Stock Exchange complex trading, the biggest decline in more than a month. The shares have gained 0.2 percent this year.