McDonald’s posts strong second quarter profit, names new chief of US operations
McDonald’s posted a strong profit in its second quarter and named a new chief of U.S. operations with sales at home under pressure as many Americans grow more cautious about spending. McDonald’s said same-store sales, or sales at locations open at least a year, edged up…
McDonald's reported a robust profit for its second quarter and appointed a new chief for its U.S. operations amid challenging sales domestically. The company's same-store sales in the U.S. increased by 0.8%, a significant drop from the 2.5% rise in the same period last year, when a Minecraft movie tie-in boosted sales. However, global same-store sales expanded by 1.3%.
In May, McDonald's had cautioned that soaring gas prices and consumer anxiety over the U.S.-Iran conflict might hurt sales. Gasoline prices in the U.S. hit a peak of $4.56 per gallon on May 21, according to AAA. The burger giant reported a profit of $2.36 billion, or $3.32 per share, for the quarter ending June 30, a slight improvement from the $2.25 billion, or $3.14 per share, earned in the same period a year ago.
Excluding one-time charges and benefits, earnings reached $3.38 per share, surpassing analysts' expectations of $3.32 per share. McDonald's revenue grew to $7.1 billion from $6.84 billion in the previous year, slightly below Wall Street's estimate of $7.13 billion. The company has been adjusting its menu and introducing value deals to target price-sensitive consumers.
In April, McDonald's launched a simplified McValue menu with 10 items priced at $3 or less. On Tuesday, McDonald's announced that Skye Anderson would take over as president of McDonald's USA, and the company's shares rose by 1.6% before the market opened.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
