McDonald's earnings top estimates despite 'challenging environment'

McDonald's on Thursday reported quarterly earnings and revenue that beat analysts' expectations, as diners spend more at its U.S. restaurants even in what CEO Chris Kempczinski called "a challenging environment."

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

McDonald's reported first-quarter net income of $1.98 billion, or $2.78 per share, up from $1.87 billion, or $2.60 per share, a year earlier.

Excluding restructuring charges and other items, the chain earned $2.83 per share.

Net revenue rose 9% to $6.52 billion.

The company's same-store sales increased 3.8% in the quarter, roughly in line with Wall Street consensus estimates of 3.7%, according to StreetAccount.

In McDonald's home market, same-store sales increased 3.9%, fueled by customers spending more when they visited.

While the fast-food giant has leaned into value to win over budget-conscious diners, it has also been trying to appeal to customers through marketing and innovation, usually at a slightly higher price point. Tie-in meals with "The Super Mario Galaxy Movie" and "KPop Demon Hunters" weren't discounted. And its limited-time, supersized Big Arch burger, which launched in early March in the U.S., aimed to provide a premium burger option.

The company's international operated markets segment also reported same-store sales growth of 3.9%. The division includes some of McDonald's biggest markets, including France, Germany and Australia.

McDonald's international developmental licensed markets segment saw same-store sales grow 3.4%. Japan was the division's top performer in the first quarter.