Net income climbed 12 percent at McDonald's in the second quarter as customers around the globe gobbled up its cheap food and U.S. customers responded to its profitable frappes and other drinks on its hit McCafe menu.
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The world's largest hamburger chain also got a boost from business in customers in China and Australia.
R.W. Baird analyst David Tarantino wrote in a research note that Friday's results showed "healthy" revenue growth but said investors have hoped for even higher figures. McDonald's shares dipped 50 cents to $70.90 in premarket trading Friday. Shares closed Thursday at $71.40.
McDonald's has outpaced many of its competitors in recent years, particularly in the U.S. where its value menu helped insulate it from much of the economic downturn that's hurt competitors.
For the three months that ended June 30, McDonald's earned $1.23 billion, or $1.13 per share. That's up from last year's net income of $1.09 billion, or 98 cents per share.
Revenue climbed 5 percent to $5.95 billion. That's up from $5.65 billion last year.
Both figures topped Wall Street forecasts. Analysts surveyed by Thomson Reuters were expecting McDonald's to earn $1.12 per share on revenue of $5.91 billion.
Meanwhile, sales at locations open at least a year climbed 4.8 percent during the quarter. The measure—an important figure that tracks restaurant performance—climbed 3.7 percent in the U.S. while rising 5.2 percent in Europe and 4.6 percent elsewhere around the globe.
In the U.S., where McDonald's has almost 14,000 of its more than 32,000 restaurants, operating income climbed 7 percent to $895.1 million. Revenue in the U.S. rose 2 percent to $2.08 billion.
McDonald's is based in Oak Brook, Ill.