McDonald’s Corp. reported stronger-than-expected second-quarter financial results, surpassing Wall Street estimates for both profit and revenue. The fast-food giant’s global comparable sales, which track sales at stores open for at least 13 months, saw a significant increase of 3.8%, comfortably ahead of the 2.6% benchmark predicted by analysts.
The positive report prompted a 3.6% climb in McDonald’s stock, marking its largest single-day gain since February 10. The company’s revenue increased by 5% to $6.84 billion, exceeding analysts’ expectations of just under $6.7 billion. Profit also saw a substantial 11% rise from the same period last year, reaching $2.25 billion, or $3.14 a share. The adjusted profit of $3.19 per share also beat the consensus estimate of $3.14.
In the United States, same-store sales grew by 2.5%, a notable reversal from a 0.7% decline in the previous year. The company attributed this growth primarily to an increase in the average amount customers spent per transaction, driven by higher prices and changes in the mix of products sold.
Chief Executive Chris Kempczinski highlighted the company’s focus on “compelling value, standout marketing and menu innovation” as key drivers of performance. He noted an improvement among middle-market consumers compared to the last quarter. The company has seen “encouraging” results from its $2.99 snack wrap and recently marked the first anniversary of its popular $5 Meal Deal.
Despite the strong results, Kempczinski acknowledged ongoing challenges, particularly with lower-income consumers who are facing economic pressures. The company also pointed to cost pressures in some markets, especially in Europe. However, McDonald’s maintained its financial forecasts for the year.
Looking ahead, the company is preparing for the August 12 launch of a new adult-themed McDonaldland Meal, which will feature collectible milkshake glasses. McDonald’s also plans to continue its global expansion, with intentions to open approximately 2,200 new restaurants in 2025, about half of which will be in China.
Kempczinski emphasized the importance of the company’s loyalty program in driving business, stating that about a quarter of its U.S. customers are enrolled. He believes that increasing participation in the loyalty program will be key to future growth led by more frequent customer visits.
