McDonald’s Corp (NYSE:MCD) shares are trading lower after the company reported first-quarter FY24 sales growth of 4.6% year-on-year to $6.17 billion, beating the analyst consensus estimate of $6.155 billion.

Global comparable sales rose 1.9%, marking 13 consecutive quarters of positive comparable sales growth. 

U.S. comparable sales rose 2.5%, and systemwide sales increased 3%. Sales by company-owned and operated restaurants increased 6% Y/Y to $2.35 billion, while sales from franchised restaurants rose 4% to $3.72 billion.

Total operating costs and expenses increased 2% to $3.43 billion. Operating income for the quarter rose 8% to $2.7 billion, with an operating margin of 44.3%, up from 42.9% year-over-year.

Adjusted EPS of $2.70 missed the consensus estimate of $2.72.

“As consumers are more discriminating with every dollar that they spend, we will continue to earn their visits by delivering leading, reliable, everyday value and outstanding execution in our restaurants,” said CEO Chris Kempczinski.

Outlook: MCD sees FY24 operating margin to be in the mid-to-high 40% range; capital expenditure of $2.5 billion – $2.7 billion.

Globally, the company expects to open about 2,100 restaurants in FY24.

Price Action: MCD shares are trading lower by 3.65% at $263.56 premarket at the last check Tuesday.