McDonald’s revenue misses estimates as chain looks to accelerate U.S. growth

McDonald's issued a mixed second-quarter report on Tuesday, with same-store sales growth in the United States lagging expectations. The global fast-food giant reported a 1.3% increase in its global same-store sales, meeting Wall Street's forecasts. However, McDonald's domestic same-store sales rose a mere 0.8%, as traffic to its U.S. eateries declined.

The company's average check size climbed, but weaker foot traffic contributed to the subpar performance. In a strategic move, McDonald's appointed Skye Anderson as president of its U.S. business, replacing Joe Erlinger, who had held the position for over six years. Anderson, a 26-year McDonald's veteran, previously served as chief operating officer for McDonald's USA and led the Global Business Services unit.

CEO Chris Kempczinski stated, "While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market." Despite a new drink lineup and marketing efforts, McDonald's faced challenges in comparing its results to the prior year, which included a global limited-time meal tie-in with the "Minecraft" movie.

Internationally, the company saw same-store sales growth of 1.5% in its operated markets and 1.9% in its developmental licensed markets. During its biennial Worldwide Convention for franchisees, McDonald's unveiled a new growth strategy, emphasizing better-tasting food and drinks, consumer-led innovation, and enhanced customer service as its four key pillars.