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McDonald's Earnings Beat Estimates Despite Slower U.S. Sales

Net income increased to $2.36 billion from $2.25 billion a year earlier.

Photo by Visual Karsa / Unsplash

McDonald's reported second-quarter earnings that exceeded Wall Street expectations but delivered mixed results as growth in its U.S. business slowed.

The company posted adjusted earnings of $3.38 per share, above analysts' estimates of $3.32, while revenue rose 4% to $7.1 billion, slightly below expectations, according to LSEG data. Net income increased to $2.36 billion from $2.25 billion a year earlier.

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The company also announced that Skye Anderson, a 26-year McDonald's veteran, has become president of McDonald's USA, replacing Joe Erlinger. CEO Chris Kempczinski said the leadership change is aimed at accelerating growth in the company's largest market.

Global same-store sales increased 1.3%, meeting expectations. U.S. same-store sales rose 0.8%, supported by higher average spending per customer, although restaurant traffic declined.

The report said international markets delivered stronger growth. McDonald's is also pursuing a new strategy focused on restaurant redesigns, improved menu offerings, customer-driven innovation and better service to strengthen long-term performance.

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