McDonald's profit, December same-store sales rise

The world's largest hamburger chain also said sales trends remained positive in January at restaurants open at least 13 months.

U.S. same-store sales rose 1 percent in December, after two months of declines. The company has faced competition from fast-food chains like Burger King and Yum Brands' Taco Bell, which are using low prices to lure diners.

McDonald's said fourth-quarter profit was $1.22 billion, or $1.11 a share, up from $985.3 million, or 87 cents a share, a year earlier.

Excluding one-time items, McDonald's earned $1.03 a share. On that basis, analysts' average forecast was $1.02, according to Thomson Reuters I/B/E/S.

Revenue, which includes sales from company-owned restaurants plus royalties from franchisees and other fees, rose 7 percent to $5.97 billion, topping analysts' forecast of $5.94 billion.

Globally, same-store sales rose 2.3 percent for the quarter and 2.7 percent in December.

McDonald's and some other fast-food restaurants had benefited when the global economic downturn sent customers to lower-priced fare, including McDonald's Dollar Menu items.

But some consumers recently have returned to more upscale chains like Panera Bread Co and Starbucks Corp -- leading some analysts to say that fast-food chains are now in for a period of sinking sales and rampant discounting, the likes of which hobbled pricier restaurants for much of the recession.

Shares edged up 0.5 percent to $63.50 in premarket trading.

(Reporting by Brad Dorfman and Lisa Baertlein; editing by John Wallace and Steve Orlofsky)