McDonald’s released better-thanexpected first-quarter financials. The top line rebounded 9% from a year earlier (up 5% on a constant-currency basis), to $5.125 billion, just ahead of our $5.100 billion forecast. Systemwide sales rose 12% (8%) and comparable-store sales increased 7.5%, reflecting growth in all geographic segments. The United States led the charge, posting a same-store sales rise of 13.6%. On our shores, there were fewer operating restrictions than in other regions, and the company continued to benefit from its digital platforms, delivery services, and vast network of drive-thrus. Moreover, the average check increased as people bought for families and groups, not just themselves, and the strength was seen across all dayparts. Marketing initiatives also helped. In the International Developmental Licensed market, comps were up 6.4%, driven by sequential improvement throughout the quarter, primarily in China and Japan. The International Operated market only notched a 0.6% comp increase, as negative results in France, Germany, and other parts of Europe were partially offset by strength in the United Kingdom, Australia, and Canada. All told, it was a nice bounce-back quarter for McDonald’s, and global same-store sales and revenues topped comparable 2019 levels, despite operating restrictions. On the profitability front, adjusted earnings per share clocked in at $1.92, up 31% from a year earlier and ahead of our $1.80 forecast. The company was able to leverage the higher sales and greater average check to increase margins, while favorable foreign-currency movements provided a $0.06-per-share tailwind. We look for the momentum to continue. The U.S. has been making notable progress against COVID-19, though we still anticipate McDonald’s enviable position in the delivery/drive-thru/digital game to keep it top of mind for consumers, even as more-normalized spending patterns slowly emerge. As for the stock, capital appreciation potential is subdued at the recent quotation. However, conservative investors will certainly appreciate the equity’s high marks for Safety and Price Stability, along with the respectable dividend yield. Matthew E. Spencer, CFA May 21, 2021