McDonald's beat consensus forecasts with its first quarter earnings - the first under new chief executive Mr Jim Cantalupo. But sales from all but its newest restaurants continued to slide.

The world's largest fast food chain returned to profit after reporting its first-ever loss in last year's final quarter, when it took heavy restructuring charges.

First-quarter earnings, before accounting changes, increased 4 per cent from $351.7 million (€320.2 million) to $364.2 million. Earnings per share, benefiting from a buyback programme, increased 7 per cent from 27 cents to 29 cents - ahead of the Wall Street consensus of 28 cents.

Including the charges, net income rose from $253.1 million or 20 cents, to $327.4 million, or 26 cents.

Mr Cantalupo, who replaced Mr Jack Greenberg in January, reiterated his pledge to turn the group around by focusing on basics such as food quality.

"I certainly am not satisfied with our results this quarter," Mr Cantalupo said. "Yet I am confident we are getting the business back on track. We are moving ahead with plans to revitalise McDonald's business."

New restaurant openings have been cut back to a planned 360 this year, only a third of last year's 1,015. Capital spending has been slashed from $2 billion last year to $1.2 billion. McDonald's said it would use the savings to cut debt, buy back shares, and possibly for a higher dividend.