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McDonald's has reported better-than-expected sales during the third quarter, lifted by the UK and an improved all-day breakfast menu.

The fast food chain said like-for-like revenue rose by 3.5% in the three months to September.

Shares in the company rose after it beat analysts' forecasts of a 1.5% increase in revenue.

McDonald's is in the process of a major turnaround plan after a sustained period of falling sales.

Areas such as the UK, Australia, Canada and Germany performed strongly over the quarter and increased like-for-like sales by 3.3%.

McDonald's also raised sales in the US, which it said was suffering from "industry softness". China weighed on its "high-growth" markets, which include countries such as Russia, because of strong comparative sales and "protests related to events surrounding the South China Sea".

However, it made gains and like-for-like sales in its high-growth markets rose 1.5%.

Steve Easterbrook, president and chief executive of McDonald's, said: "Looking ahead, we are focused on growing global comparable sales and serving more customers while being mindful of the near-term challenges in several markets."

The company has introduced a number of initiatives to attract customers, including adding new items its all day breakfasts, including biscuits, McMuffins and McGriddles.

Neil Saunders, chief executive of Conlumino, the retail research and consultancy group, said one of the challenges McDonald's faced was widening its appeal.

He said: "While the menu changes have drawn in more customers, they have not completely reinvigorated the brand with younger consumer segments, many of whom still shun the chain in favour of what they see as more premium and satisfying offerings from players like Shake Shack."