(Reuters) - McDonald's Corp (N:MCD) beat forecasts with its quarterly sales on Wednesday and said it would spend more on technology and research in 2020, as the world's largest burger chain bets on revamped stores and menu additions to lure more diners and gain market share.
Chief Executive Officer Chris Kempczinski, who took charge in November after the previous CEO was dismissed, said the global comparable sales growth in 2019 was the chain's highest in more than 10 years.
McDonald's reported a 5.9% rise in global comparable sales, both for the full year and the fourth quarter, beating analysts' forecast for a 5.23% growth, according to IBES Refinitiv.
The group forecast a 5% to 7% constant currency rise in selling, general and administrative expenses spending on tech this year after an increase of just 1.3% in 2019 as it continues to invest in technology, research and development.
Over the past few years, McDonald's has focused on improving the dining experience with kiosks and digital displays, shoring up delivery services and adding new burgers, beverages and breakfast foods to its menus. It also began modernizing stores across the globe and bought two smaller technology firms that focus on digitizing stores and drive-thru menus.
Sales in U.S. restaurants open for more than 13 months rose 5.1% for the fourth quarter ended Dec.31, slightly above the estimate of a 4.67% increase. Still, guest numbers for its U.S. restaurants fell 1.9% in the quarter, and were just 1% up overall.
"Returning to guest count growth in the U.S. remains our top priority," Chief Financial Officer Kevin Ozan said in a post-earnings call. "Sluggish industry traffic growth and unit expansion continue to fuel an aggressive battle for market share,"
The company's stock, a component of the blue-chip Dow Jones Industrial index (DJI), were flat in pre-market trade after initially gaining on better-than-expected quarterly results.
Excluding one-time items, the company earned $1.97 per share, a cent above Wall Street expectations.
Net income rose 14% to $2.08 per share. Revenue rose 3.6% to $5.35 billion, slightly above the estimate of $5.31 billion.
The stock gained 11.3% in 2019, lagging some of its rivals such as Chipotle (N:CMG) and Starbucks (NASDAQ:SBUX) and the broader S&P 500 restaurants index <.SPLRCREST> that rose nearly 22% last year.