McDonald's focus on value and a big new burger drive sales in the first quarter

McDonald’s posted better-than-expected sales in the first quarter as a new burger — and a continuing emphasis on value — brought in customers.

The company said its global same-store sales, or sales at locations open at least a year, rose 3.8% in the January-March period. That was better than the 3.7% increase Wall Street was expecting, according to analysts polled by FactSet.

McDonald's shares rose more than 3% before the opening bell Thursday.

The limited-time Big Arch burger —- a 1,020-calorie behemoth that went on sale in the U.S. last month — became a viral sensation after McDonald’s CEO Chris Kempczinski posted a video of himself taking a nibble from one. Kempczinski was mocked for his tentative bite. Tom Curtis, president of rival Burger King, posted his own video taking a vigorous bite of his chain’s new Whopper.

But the Big Arch did capture peoples' attention. McDonald’s said U.S. customers spent more per visit in the first quarter than the same period a year ago. The Big Arch costs well over $8 in many locations.

At the same time, McDonald's is emphasizing value to attract inflation-weary customers in the U.S. and abroad. The company cut prices on some U.S. combo meals in September, and Kempczinski said in February that those changes, along with other discounts, helped McDonald’s gain share among consumers with household incomes of $45,000 or less. That's a segment that had been drifting away from McDonald's for several years.

McDonald's has been leaning even more heavily into deals as gasoline prices rise due to the Iran war. Starting April 21, McDonald’s U.S. stores began offering 10 items that each cost less than $3.