McDonald's Posts Strong Profit, But US Sales Lag Amid Consumer Caution

McDonald's reported a strong second quarter profit and named Skye Anderson as president of McDonald's USA, but sales at home remain under pressure due to consumer caution about spending.

The company posted a 0.8% increase in same-store sales in the US, down from the 2.5% rise a year ago when it successfully promoted a meal tied to 'A Minecraft Movie'. Global same-store sales rose 1.3%, according to CEO Chris Kempczinski.

Kempczinski attributed the slowdown in US performance to inconsistent execution across its restaurants and marketing programs that didn't meet expectations, saying 'We don't have a strategy problem. We simply didn't execute at the level we needed to in the second quarter.'

The company is also dealing with high gas prices and consumer anxiety over the conflict with Iran, which could dent sales. To combat this, McDonald's has introduced value meals and other specials, including its simplified McValue menu with 10 items priced at $3 or less.