McDonald’s Corp. rose after the company reported comparable sales that beat global estimates, indicating the chain is winning ground in the fierce fight for fast-food market share.

• Total same-store sales climbed 4.2 per cent, even as McDonald’s home market slightly missed growth estimates.

Key Insights

• McDonald’s, which gets nearly two-thirds of revenue from overseas, said comparable sales in its international lead markets division that includes Australia and the U.K. topped estimates, rising 5.4 per cent. The high-growth segment, which includes China, also beat.
• Its low-cost strategy continues to pay off as diners flock to discounts in a fast-food race to the bottom. Its large size with 37,000 locations gives it a commodity-buying advantage, meaning the chain and its franchisees can afford to lower prices more than competitors.
• The recent push into delivery with Uber Eats also is helping sales domestically, though other rivals are starting to catch up on door-to-door service.

Market Reaction

• The shares rose as much as 2.6 per cent before the start of regular trading in New York amid a wider stock selloff. The stock was down 3.2 per cent this year through Monday’s close.

--With assistance from Vivian Li (Bloomberg Global Data)