McDonald’s Corporation reported mixed second-quarter results on Tuesday. The fast-food giant exceeded analysts’ earnings expectations, although revenue came in slightly below forecasts.
Adjusted earnings reached $3.38 per share, beating the consensus estimate of $3.34 per share.
However, quarterly revenue totaled $7.1 billion, narrowly missing Wall Street’s forecast of $7.14 billion.
McDonald’s shares rose approximately 2.6% in premarket trading following the announcement.
Adjusted Earnings Rise 6%
McDonald’s adjusted earnings per share increased 6% from $3.19 in the same quarter last year.
The adjusted figure excluded restructuring expenses of $0.06 per share linked to the company’s Accelerating the Organization initiative.
The improvement reflected continued cost control and positive sales growth across McDonald’s main operating regions.
Revenue and Systemwide Sales Increase
Revenue grew 4% compared with the previous year, or 2% when excluding currency movements.
Systemwide sales climbed 5% to $37 billion. On a constant-currency basis, they increased by 4%.
These figures include sales from company-operated restaurants and franchised locations across McDonald’s global network.
Global Comparable Sales Grow Across All Segments
Global comparable sales increased by 1.3% during the quarter.
Comparable sales in the United States rose 0.8%, while International Operated Markets recorded growth of 1.5%.
International Developmental Licensed Markets performed slightly better, posting comparable sales growth of 1.9%.
Chairman and CEO Chris Kempczinski said McDonald’s achieved positive comparable sales growth in every operating segment. He added that the company had taken steps to improve execution and prepare the business for its next stage of long-term growth.
Higher Menu Prices Support U.S. Sales
U.S. comparable sales were supported by higher average customer spending and a more favorable product mix.
However, weaker comparable guest traffic partly offset those gains. This suggests that customers spent more per visit, even though the number of transactions declined.
The performance highlights the challenge McDonald’s faces in balancing pricing decisions with consumer demand.
Germany, Australia and the UK Lead International Growth
Within International Operated Markets, Germany, Australia and the United Kingdom delivered the strongest results.
France weighed on the division’s overall performance and limited growth during the quarter.
In International Developmental Licensed Markets, Japan led the positive sales trend. However, weaker results in China reduced the segment’s momentum.
Operating Income Reaches $3.34 Billion
McDonald’s reported consolidated operating income of $3.34 billion, representing a 3% increase from the previous year.
On a constant-currency basis, operating income rose 2%.
After excluding restructuring charges, operating income increased by 4%, or 2% when adjusted for currency movements.
McDonald’s Appoints New U.S. President
The company also announced the immediate appointment of Skye Anderson as President of McDonald’s USA.
Anderson has worked at McDonald’s for 26 years and succeeds Joe Erlinger, who is leaving the company after more than two decades.
The leadership change comes as McDonald’s focuses on improving restaurant execution and strengthening long-term growth across its largest market.
