McDonald's reported better-than-expected quarterly same-restaurant sales, helped by the launch of all-day breakfast in the United States and recovering demand in China.
Sales at U.S. restaurants open at least 13 months rose 5.7 percent, handily beating the average estimate of 2.7 percent.
McDonald's introduced all-day breakfast at its U.S. restaurants in October, in a bid to attract more diners in the face of growing competition from rivals such as Chipotle Mexican Grill and Shake Shack.
"As we enter 2016, we expect continued positive top-line momentum across all segments," said Chief Executive Officer Steve Easterbrook, who took the helm last year.
A number of initiatives contributed to strength in the quarter, but all-day breakfast is attracting the most attention, said Jeffrey Bernstein, senior restaurant analyst at Barclays. Also boosting the brand were upgrades to key ingredients, a focus on improving customer service and the relaunch of McDonald's value platform under the banner of McPick 2, he said.
"People can't get enough of the Egg McMuffins in the afternoons and the evenings," he told CNBC's "Squawk on the Street" on Monday. "Breakfast and value I think would be the key drivers, and as we move into 2016, I'm sure they'll refocus on some premium products as well."