McDonald's Q2 Earnings Report Expected Amid Economic Challenges
McDonald's is set to report its second quarter earnings on Tuesday before the market opens. The fast food chain is expected to post global same-store sales growth of 1.4%, a decline from the 3.8% posted in the first quarter, according to Bloomberg consensus data.
Analysts expect US comparable sales to have grown for the fifth quarter in a row, with same-store sales rising 0.9%, less than the 2.5% jump in the second quarter of last year. Adjusted earnings per share are estimated to increase $0.13 year over year to $3.32.
Revenue is expected to grow by 4% to $7.12 billion, compared with the same period last year. McDonald's stock has been underperforming the S&P 500 this year, down 12% so far.
The company faces several challenges, including continued strain on low-income consumers and the lapse of the Minecraft limited-time offering in April. Evercore ISI cut its estimates on US same-store sales growth due to the cyclosporiasis outbreak still weighing on consumers' minds.