McDonald’s U.S. sales growth stalls to 0.8% as gas prices bite

McDonald's U.S. sales witnessed a slowdown, growing by just 0.8% in the second quarter, as rising gas prices and consumer wariness took their toll. The company unveiled a new president for its U.S. operations, Skye Anderson, in an effort to revitalize the struggling market. Same-store sales, which include locations open for at least a year, were up slightly, marking a stark contrast to the 2.5% growth recorded a year earlier, when McDonald's benefited from a Minecraft movie tie-in menu.

Despite posting a strong profit with $2.36 billion in earnings for the quarter, the chain warned that high gasoline prices and concerns over the U.S.-Iran conflict could negatively impact sales. Gas prices peaked at $4.56 per gallon in early May, as reported by AAA. McDonald's revenue increased to $7.1 billion from $6.84 billion in the same period last year, slightly missing analysts' estimates of $7.13 billion.

The company has been working on cost-cutting measures and enticing budget-conscious customers through value menu options, including a simplified McValue menu introduced in April with 10 items priced at $3 or less.