McDonald's Corp. extended its winning streak in May as customers bought more of the fast-food chain's cheap eats and took to its new iced-coffee line, the world's largest burger chain said Tuesday.
McDonald's also said it will take a hit to its full-year profit because of the weak euro, which accounts for about 25 percent of its operating income. The burger chain said the effect will be minimal in the second quarter.
Sales in locations open at least a year rose 4.8 percent around the globe last month. The measure rose 3.4 percent in the U.S. to extend a streak of gains recorded since February.
The figure climbed 5.7 percent in Europe and 3.8 percent in other regions.
Sales from locations open at least a year are a key indicator of a restaurant chain's performance because they exclude growth at stores that open or close during the year.
CEO Jim Skinner said U.S. sales are being driven by the company's new icy drinks, its 20-piece chicken nuggets that's being sold for about $5.65 and "Shrek"-themed Happy Meals.
R.W. Baird analyst David Tarantino told investors in a research note that Tuesday's results were "healthy" and generally in line with forecasts.
Morningstar analyst R.J. Hottovy said that the results show McDonald's is getting a boost from the improving economy but will still do better than many of its competitors, thanks in large part to its addition of new products and limited-time menu items.
"I think McDonald's is executing better than its rivals," he said. "And a lot of that is product innovation."
The rollout of the iced coffee drinks this year followed on the successful launch of the McCafe line last year.
Late in 2009 and early this year, McDonald's saw three monthly sales declines in four months as the weak economy and high unemployment finally started to hit its U.S. business.
In April, the measure rose 3.8 percent in the U.S.
McDonald's is based in the Chicago suburb of Oak Brook, Ill.
Its shares dipped $1.21, or 1.8 percent, to $67.96 in late afternoon trading Tuesday.