McDonald's Profits Rise Despite US Sales Slowdown
McDonald's posted a strong second quarter profit, beating analyst expectations despite challenges in its US market. The company earned $2.36 billion, or $3.32 per share, and saw revenue climb to $7.1 billion.
The US same-store sales edged up 0.8%, a slowdown from the previous year's 2.5% increase. Global same-store sales rose 1.3%. CEO Chris Kempczinski attributed the performance in part to inconsistent execution across restaurants and marketing programs that didn't meet expectations.
Kempczinski noted that McDonald's had gotten 'a bit off target' on value about a year ago, with its base menu pricing running higher than competitors in many places. The company has since worked to bring its prices below or closer to competitors on items ranging from burgers to drinks.