McDonald's Corp. (McDonald's (MCD)) reported higher first-quarter earnings and sales on Thursday, driven by broad-based comparable sales growth across its global markets and continued momentum from loyalty programs.

Strong First-Quarter Earnings Growth

The company reported first-quarter adjusted earnings per share of $2.83, beating the analyst consensus estimate of $2.74. Quarterly sales of $6.517 billion outpaced the Street view of $6.466 billion.

The Chicago-based fast-food giant said first-quarter net income rose 6% to $1.98 billion, or $2.78 per diluted share, from $1.87 billion, or $2.60 per diluted share, a year earlier.

Revenue increased 9% to $6.52 billion from $5.96 billion in the prior-year quarter. Operating income climbed 12% to $2.95 billion.

Global Comparable Sales Remain Strong

Global comparable sales increased 3.8% during the quarter, with the U.S. segment up 3.9%, international operated markets rising 3.9% and international developmental licensed markets gaining 3.4%.

McDonald's said U.S. comparable sales growth was primarily driven by higher customer spending per visit, while international markets were led by strength in the U.K., Germany, Australia and Japan.

Loyalty Program And Systemwide Sales Momentum

Systemwide sales increased 11% to more than $34 billion during the quarter, while sales tied to loyalty members exceeded $9 billion across 70 participating markets.

CEO Highlights Value Strategy And Menu Innovation

Chairman and CEO Chris Kempczinski said the company's value offerings, marketing campaigns and menu innovation helped drive growth despite a difficult operating environment.

"McDonald's delivered this quarter," Kempczinski said in a statement. "Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want."

Restructuring Charges And Revenue Breakdown

The company said results included pre-tax restructuring charges of $47 million related primarily to its "Accelerating the Organization" modernization initiative.

Franchised restaurant revenue rose 9% to $4.01 billion, while sales at company-owned restaurants increased 9% to $2.32 billion.

Earnings Call Highlights

McDonald's executives said during the company's conference call that the conflict in the Middle East did not have a material impact on first-quarter results, though management cautioned that the operating environment remains volatile.

The company also noted that financial support for franchisees tied to the Extra Value Meal relaunch program is now expected to come in below the initial estimate of roughly $35 million.

Executives added that early performance indicators for McValue, following recent program changes introduced a few weeks ago, are tracking in line with expectations.

In China, McDonald's said it continues to expect macroeconomic pressures to persist, reflecting ongoing consumer and economic challenges in the region.

McDonald's Price Action

McDonald's shares were up 3.44% at $293.88 during premarket trading on Thursday, according to market data.