McDonald’s (NYSE:) reported Q1 earnings and revenue that topped analyst estimates.

Adjusted EPS was $2.28 at the fast-food chain, an increase of $1.92 over the prior year. Analyst consensus is $2.17 per share. The revenue came to $5.67 Billion, an increase of 11% YoY. This is higher than the $5.57 billion estimate.

Comparable sales rose 11.8% in the fourth quarter, surpassing the +8.73% growth estimate. The U.S. reported comparable sales increased by 3.5%, while analysts predicted a +3.59% increase. MCD projects that the net expansion of restaurant units will contribute around 1.5% towards its systemwide 2022 sales growth.

According to the company, the operating margin for 2022 will be low to mid 40%. They also expect to open 1,700 to 1,800 additional locations around the world this year.

MCD plans to open between 400 and 500 new restaurants in America and internationally. Development licensees, affiliates and other investors are expected to provide capital for more than 1300 locations.

Pretax operating expenses of $127 million to support its operations in Russia and Ukraine are included in the Q1 financial report. In addition, the report includes $500 million of non-operating costs to be able to hold onto a potential settlement in relation to an international tax issue.

Cowen analyst Andrew Charles says results were “more impressive top line than bottom line to start 2022.”

“We were pleased with in-line U.S. sales in a difficult quick service backdrop while international comps handily beat amid investor concerns on Russia/Ukraine & China. MCD missed adj EPS due to softer U.S. company & franchise margins & other operating expenses that weighed on EPS. We believe MCD’s streamlined focus positions the company well to sustain share gains domestically in 2022,” Charles said in a client note.

Jared Garber, analyst at Goldman Sachs commented:

“We believe MCD shares will trade higher today on the strong top-line strength, particularly across the IOM segment, but look for incremental color on the growth outlook for SSS trends and the unit growth (in light of the guidance reduction).”

McDonald’s stock price is up nearly 2% today.

By Senad Karaahmetovic