McDonald’s Corp. posted stronger-than-expected second-quarter results, with revenue rising 5% to $6.84 billion and adjusted earnings advancing to $3.19 a share, surpassing Wall Street estimates of $6.70 billion and $3.15 respectively. Diluted earnings per share were $3.14, up 12% from a year earlier. Global comparable sales increased 3.8%, comfortably ahead of analysts’ projections. U.S. same-store sales grew 2.5% after declining in the prior-year quarter, while International Operated Markets rose 4.0% and International Developmental Licensed Markets climbed 5.6%. Systemwide sales gained 8%, and purchases by loyalty members contributed about $9 billion during the period. Management attributed the outperformance to value-focused bundles, promotional tie-ins such as a “Minecraft” meal, and menu additions like McCrispy Chicken Strips. Chief Executive Officer Chris Kempczinski said re-engaging lower-income diners is “critical,” noting that traffic among that group remains subdued even as middle-income visits recover. Executives also highlighted plans to sharpen menu pricing, bolster breakfast and accelerate digital investments. The results lifted the shares roughly 3% in pre-market trading. While cautioning about near-term consumer pressures, the company said it expects U.S. sales momentum to strengthen in the fourth quarter.
McDonald's Surges As These Two Factors Drive Q2 Beat https://t.co/9ZamXcvHdV
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McDonald's just reported a big acceleration in comp store sales growth. "We outperformed competitors on both comp sales and comp guest counts... The U. S. Remained challenging as visits across the industry by low income consumers once again declined by double digits" $MCD https://t.co/h2WVC3XfTR