MCD stock rises as McDonald's posts mixed Q2 earnings
McDonald's delivered mixed second-quarter results on Tuesday, beating Wall Street's adjusted earnings estimates while missing revenue expectations. U.S. same-store sales rose just 0.8% as restaurant traffic fell, and MCD stock climbed about 2% in premarket trading after the burger giant also named a new U.S. president.
Key Takeaways
- Adjusted EPS of $3.38 beat the $3.32 LSEG consensus; revenue of $7.10 billion missed $7.13 billion expected.
- U.S. same-store sales rose 0.8% as average check grew but traffic declined.
- Global same-store sales increased 1.3%, matching StreetAccount estimates.
- Skye Anderson takes over as president of McDonald's U.S. business, succeeding Joe Erlinger.
- International markets outpaced the U.S., with operated and licensed segments up 1.5% and 1.9%.
For investors tracking restaurant chains and consumer spending in our Net Worth & Wealth coverage, the print confirms a familiar pattern: higher checks offset weaker foot traffic at home.
How did MCD stock and earnings compare with Wall Street forecasts?
According to CNBC, McDonald's reported adjusted earnings of $3.38 per share versus $3.32 expected, while revenue came in at $7.10 billion against a $7.13 billion forecast.
GAAP net income rose to $2.36 billion, or $3.32 per share, from $2.25 billion, or $3.14 per share, a year earlier. Excluding restructuring charges and other items, the company earned $3.38 per share. Net revenue rose 4% to $7.1 billion for the quarter ended June 30.
Shares rose about 2% in premarket trading after the release, giving MCD stock a modest lift despite the revenue miss.
Why did McDonald's U.S. same-store sales slow?
U.S. same-store sales increased 0.8% in the quarter. The chain said average check rose, but traffic to domestic restaurants fell.
Global same-store sales ticked up 1.3%, meeting Wall Street expectations. Results were stronger abroad: international operated markets grew 1.5% in same-store sales, while international developmental licensed markets rose 1.9%.
In early May, McDonald's launched refreshers and crafted sodas in the U.S. It still faced tough year-ago comparisons from a global limited-time meal tied to the "Minecraft" movie.
What leadership change should investors watch next?
McDonald's named Skye Anderson president of its U.S. business, effective Tuesday. A 26-year company veteran, she previously served as chief operating officer of McDonald's USA and earlier led Global Business Services. She succeeds Joe Erlinger, who led the division for more than six years.
"While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market," CEO Chris Kempczinski said in a statement.
In June, the company outlined a new growth plan for franchisees built on restaurant design, better-tasting food and drinks, consumer-led innovation, and improved customer service—aims that now sit squarely with Anderson's U.S. mandate.