McDonald's Beats Expectations Amid US Sales Slowdown
McDonald's posted a strong profit in its second quarter, but same-store sales at home underperformed expectations due to inconsistent execution and marketing programs. CEO Chris Kempczinski attributed the weakness to 'simply didn't execute at the level we needed to' during the company's earnings call.
The U.S. average for regular gasoline reached $4.56 per gallon on May 21, which could have contributed to consumers keeping a close eye on their wallets and reducing spending at McDonald's locations. The company has since launched value meals and other specials to attract cost-conscious customers, including its simplified McValue menu with items priced at $3 or less.
McDonald's earned $2.36 billion in the three months ended June 30, beating analysts' expectations of $3.32 per share excluding one-time charges and benefits. Revenue climbed to $7.1 billion from $6.84 billion in the prior-year period, but came a bit short of Wall Street's estimate.
The company also announced that Skye Anderson will be president of McDonald's USA, replacing an unnamed current leader.