McDonald’s Corp. reported sales that topped estimates as consumers continue eating out despite higher prices. 

The closely watched measure of same-store sales rose 9.7 per cent in the second quarter compared with a year ago, the company said Tuesday. Analysts were looking for a gain of 7.5 per cent, according to data compiled by Bloomberg. Sales at US stores open at least a year climbed 3.7 per cent, also beating expectations.

The Big Mac seller said US sales growth was helped by strategic price increases and value offerings, in addition to the popularity of digital tools like the mobile app and delivery. The company had said in April that some diners were trading down to less-expensive menu options, and that trend continued last quarter. However, overall US guest counts were relatively flat, suggesting demand hasn’t been undermined by decades-high inflation.

“When you get into a more difficult economic environment McDonald’s usually performs well,” said Brian Yarbrough, an analyst at Edward Jones. “But you do have to wonder how long they can continue” to raise prices, he said.

McDonald’s said that its US menu prices were up by high-single digits compared with last year, and that it expected them to be up in a similar range for the full year.

Adjusted profit surpassed estimates, coming in at US$2.55 a share, compared with an estimate of US$2.46. Digital sales are also growing, topping US$6 billion in the quarter in the top six markets, accounting for almost a third of their total sales. That figure includes sales at all restaurants, franchised and corporate.

“The McDonald’s System continues to demonstrate strength and resiliency,” Chief Executive Officer Chris Kempczinski said in a statement. “While we are planning for a wide range of scenarios, I am confident that our plans and people position McDonald’s to weather this environment better than others.”

The company is one of the first restaurant chains to report earnings. Its results paint a relatively upbeat picture of the strength of the US consumer despite the highest inflation in four decades. That may lessen the blow from Walmart Inc.’s surprise forecast cut late Monday, which some interpreted as a red flag for the broader economy.

At the same time, wage inflation and rising energy costs are hurting margins at McDonald’s. The company said its total restaurant margin rose 3 per cent in the quarter, or 8 per cent excluding currency translation. Inflation pressures are expected to affect margins for the rest of the year.

Shares of the Chicago-based company rose 1.8 per cent at 10:32 a.m. in New York, amid a selloff in consumer-discretionary stocks. McDonald’s had fallen 6.6 per cent so far this year through Monday’s close, compared with a 17 per cent drop in the S&P 500 Index.