McDonald's 'Bad Trade' on Value Costs Q2 Earnings

McDonald's Q2 Earnings Missed Expectations Due to 'Bad Trade' on Value

The fast-food giant reported adjusted earnings per share of $3.38 for the quarter ended June 30, 2026, beating estimates by 1.77%. However, revenue came in 0.39% below expectations at $7.099 billion.

US comparable sales grew only 0.8% in the quarter, down sharply from 2.3% in the first half. CEO Chris Kempczinski attributed this decline to a 'bad trade' on value, specifically the pullback of digital offers and the Buy One, Add One promotion to fund a new under-$3 menu.

This move, which accounted for roughly two-thirds of the US traffic shortfall, was intended to help fund the Every Day Affordable Price (EDAP) menu. However, it backfired as loyal customers missed their digital offers. The EDAP menu also struggled due to inconsistent execution and weak awareness among customers.

The company has named Skye Anderson President of McDonald's USA effective immediately, replacing Joe Erlinger after nearly seven years running the division. Anderson will now be responsible for fixing the value trade, tightening the promotional calendar, and restoring digital engagement with lapsed loyal customers.