McDonald's global quarterly sales exceeded expectations and the value bet is beginning to pay off.

McDonald's announced on Wednesday that global comparable sales and profits for the fourth quarter exceeded Wall Street expectations, as meal discounts and strong marketing promotions attracted budget-conscious American diners, with demand in Australia and the UK also remaining strong. For the three months ending on December 31, the global same-store sales of this hamburger giant increased by 5.7%, exceeding the analyst's average expectation of 3.7%. McDonald's CEO Chris Kempczinski said during the earnings conference call that there is increasing evidence that the value strategy of this Chicago-based company is working, with an increase in visits from low-income customers. McDonald's started offering subsidies for franchisees' "value" meals last year, but these subsidies are gradually being reduced. Kempczinski said, "We will not subsidize pricing in the long term."