McDonald's beats expected sales

CHICAGO (AP) — McDonald's Corp. said Monday its second-quarter earnings will top analysts' expectations thanks to a strong showing by its European restaurants and increased U.S. breakfast sales that combined to boost June sales. The news pushed its stock up 5.2 percent.

The world's largest restaurant company posted a 5.9 percent increase in worldwide same-store sales last month, including 5.2 percent in the United States and 4.5 percent in Europe, the two markets where a majority of its outlets are located.

The same-stores increase, reflecting restaurants open more than a year, also was an impressive 8.8 percent in the Asia/Pacific, Middle East and Africa segment.

Higher revenue from sales of premium coffee, which was introduced nationwide early this year, and a promotion linked to the movie "Cars" helped keep U.S. results strong. U.S. same-store sales finished the second quarter up 4.2 percent from a year ago.

"In the U.S., McDonald's continues to be the favored breakfast destination, and we are now attracting even more customers. This positive breakfast trend and a popular Happy Meal promotion helped drive U.S. comparable sales" in June, said Chief Executive Officer Jim Skinner.

Shares of McDonald's rose $1.71 to close at $34.72 in heavy trading on the New York Stock Exchange.