McDonald's Second Quarter Sales Exceeded Expectations

McDonald's Second Quarter Performance

McDonald's (MCD) announced on Wednesday that same-store sales in the U.S. exceeded expectations for the second quarter. The company stated that it continues to grow in a challenging environment with value-oriented offerings.

The company reported a 2.5% increase in same-store sales in the U.S. compared to the previous year, driven by high sales growth. This figure, which surpassed Wall Street's expected increase of 2.2%, is consistent with the 2.5% growth seen in the previous quarter. According to Bloomberg, global same-store sales increased by 3.6% during the quarter, aligning with forecasts, and experienced a 3.8% increase in the second quarter.

Adjusted earnings per share were reported at $3.22; this is below the expected $3.32 but met the $7.1 billion revenue target.

McDonald's CEO Chris Kempczinski stated, "By offering daily value and affordable prices, along with menu innovation and effective marketing, we are gaining momentum, which keeps customers coming through our doors."

McDonald's reported a 6% increase in systemwide sales, which includes company-operated and franchise locations.

Throughout the third quarter, McDonald's announced the return of the Snack Wrap and reached an agreement with U.S. franchisees to reduce the cost of certain combo meals. Fast-food companies continue to compete with a wide range of value offerings that will be affected by inflation's impact on consumer spending.

In the previous earnings call, McDonald's CFO Ian Borden told investors, "We expect consumer challenges to persist throughout the rest of the year." However, the company reaffirmed its 2025 targets, with Borden stating, "At the beginning of the year, we indicated that we believed the second half of the year would be stronger than the first half. That belief continues."

Wall Street is optimistic that the company's recent actions have created a turning point in winning back consumers. Citi analyst Jon Tower noted in a memo to clients, "There are still drivers in place for U.S. sales to accelerate in the fourth quarter and into 2026."

Other catalysts being closely watched by Wall Street include the return of the Monopoly game, both digitally and physically, after nearly a decade, as well as new drink additions inspired by McDonald's short-lived CosMc beverage concept and various events.