McDonald's Posts Strong Q2 Profit Amid Struggling US Sales

McDonald's reported strong profits in its second quarter, despite struggling sales in the US market. Same-store sales rose only 0.8% in the US, a significant slowdown from last year's 2.5% increase. Global same-store sales were slightly better at 1.3%. CEO Chris Kempczinski attributed the poor performance to inconsistent execution across its restaurants and marketing programs that didn't meet expectations.

Kempczinski also pointed out that McDonald's previously had a strategy problem, but now it's more about executing on its existing plans. The company is addressing this by launching more digital offers nationally, starting next week, which will include personalized deals for loyal customers. This move aims to boost sales and attract cost-conscious consumers.

The US market has been under pressure due to high gas prices and consumer anxiety over the conflict with Iran. McDonald's has tried to lure in these customers through value meals and other specials. The company introduced a simplified McValue menu, which features 10 items for $3 or less, last April.