McDonald’s reported disappointing second-quarter earnings and revenue, falling short of Wall Street expectations. The fast-food giant announced an adjusted earnings per share of $2.97, missing the estimated $3.07. Revenue stood at $6.49 billion, below the anticipated $6.61 billion.
The company’s net income dropped to $2.02 billion, or $2.80 per share, from $2.31 billion, or $3.15 per share, the previous year. Excluding certain charges, McDonald’s still hit $2.97 per share in earnings. Quarterly revenues remained flat compared to last year, but same-store sales decreased by 1%, failing to meet expectations of a 0.4% increase. This marks the first decline in companywide same-store sales since the fourth quarter of 2020.
U.S. same-store sales slipped by 0.7% during the quarter, a stark contrast to the 10.3% growth seen the previous year, which was buoyed by the Grimace Birthday Meal. The trend follows broader consumer cutbacks on dining out, particularly at fast-food restaurants. Foot traffic at U.S. locations also fell, despite McDonald’s efforts to lure customers back with discounts, including a newly introduced $5 meal deal.
International markets experienced similar challenges. The international operated markets division saw a 1.1% drop in same-store sales, and the international developmental licensed markets unit, covering China and Japan, reported a 1.3% decline. The company continues to tackle boycotts in the Middle East and sluggish sales in China.
McDonald’s executives had previously forewarned of intensifying competition amid a weakened consumer environment. The company remains focused on promotional strategies to attract diners both domestically and internationally.
— Reporting by CNBC’s Robert Hum. For more insights, stay tuned to CNBC PRO.
Original Story https://www.cnbc.com/2024/07/29/mcdonalds-mcd-q2-2024-earnings.html
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