Golden Arches sees net income rise 4%

McDonald’s Corp., which has been thriving during the economic downturn, saw its first-quarter profit climb nearly 4% as more customers worldwide went to the Golden Arches for a cheap meal.

Sales of chicken, breakfast and beverages were particularly strong, McDonald’s said.

The nation’s No. 1 hamburger chain said it captured a bigger bite of the market in nearly every part of the world as consumers cut back on their spending and looked for a less-expensive alternative to sit-down restaurants.

“They’re scaling back and being more discernible about what they purchase,” Chief Executive Jim Skinner said Wednesday on a conference call with investors.

New fried-chicken dishes and espresso-based drinks have been boosting sales for several quarters.

The espresso drinks are on the menu at 10,000 of the company’s 14,000 U.S. restaurants and are expected to be at all of them this summer. Once the rollout is finished, Skinner said, the company will begin a major ad campaign to promote the drinks.

Analysts have said the new espresso beverages could make the fast-food chain a big player in the specialty coffee sector ruled by Starbucks Corp., which has been closing stores and cutting jobs.

Skinner also confirmed reports that the Oak Brook, Ill., company will launch its hefty Angus Burger in all U.S. locations this year. The burger has been sold in several test markets, but the company held back from introducing it to all U.S. consumers in favor of focusing on its core menu. The burger is more expensive than McDonald’s other burgers.

Barclays Capital analyst Jeffrey Bernstein called the company’s results “impressive in this environment” and said in a note to investors that McDonald’s would remain “the name investors return to in a ‘flight to quality.’ ”

McDonald’s earned $979.5 million, or 87 cents a share, up from $946.1 million, or 81 cents, last year. That beat estimates by analysts, who on average expected a profit of 82 cents.

Sales at locations open at least a year rose 4.3% worldwide and 4.7% in the U.S.

But overall revenue, hurt by an increase in the value of the dollar against other currencies, slid 10% to $5.08 billion. Analysts had estimated revenue of $5.19 billion.

McDonald’s shares fell $1.38, or 2.5%, to close Wednesday at $54.25.