Hadley Malcolm

USA TODAY

McDonald's all-day breakfast menu continues to galvanize customers as the company's turnaround plan showed further signs of traction in the first quarter.

McDonald's (MCD) has been experimenting with different menu offerings, including various sizes of its products and different value combinations. It announced earlier this week that it has started testing both a supersize and a miniature version of its classic Big Mac in Ohio and Dallas. It phased out its famous dollar menu in favor of what it calls McPick 2, where customers can get two items for $2, and has also been going head to head with Taco Bell competing for breakfast customers.

Those moves are all part of a plan to turn McDonald's into a modern burger company, announced under CEO Steve Easterbrook last year. And they appear to be working. Same-store sales in the U.S., a measure of sales at stores open at least a year, increased 5.4% on the popularity of the all-day breakfast menu and McPick 2, the company said in its first-quarter earnings report Friday.

"The actions we're taking are working," Easterbrook said on a call with investors. "Customers are noticing a difference, and they're choosing McDonald's more often."

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Easterbrook said McDonald's will continue enhancing the menu "to improve quality perceptions of our food," and aims to simplify operations to win over customers.

The fast-food industry faces extreme headwinds in the fight for Americans' wallets as public opinion has swayed against processed and unnatural food. McDonald's has closed underperforming stores and has focused on creating a better experience for customers with a more curated menu and flexible ordering options via its mobile app and kiosks in stores.

Globally, same-store sales grew 6.2%, with strong performance in the United Kingdom, Canada and Australia. High-growth markets such as China and Japan also contributed to a sales bump.

The company reported first-quarter earnings that went above expectations for profit and sales. Earnings per share came to $1.23, beating analyst estimates of $1.17, according to S&P Global Market Intelligence.

Revenue decreased 1% to $5.90 billion from $5.96 billion in the year-ago quarter, affected in part by a strong dollar. That came in ahead of the $5.82 billion that analysts expected.

McDonald's shares closed down Friday 0.2% to $125.50.