McDonald's Taps New US President to Spur Growth Amid Slowing Sales
McDonald's has struggled to regain momentum in its US business, reporting only 0.8% growth at its restaurants in the second quarter - its slowest pace in over a year. The company's sales of $7.1 billion slightly trailed analyst expectations, but earnings per share of $3.38 still topped the average estimate from Wall Street.
The mixed results came with the announcement that Skye Anderson will take over as president of McDonald's US arm, replacing an unnamed predecessor. CEO Chris Kempczinski said the appointment 'will bring focus and urgency' to accelerating performance in its largest market.
McDonald's has faced challenges from raising prices during the pandemic, which lost it customers seeking value. The company also removed digital offers, including the 'Buy One, Add One for $1' feature, which affected loyal customers. Only about 60-65% of McDonald's restaurants have implemented an under-$3 menu, with franchisees setting their own prices.
Kempczinski acknowledged that the company has thrown a lot at both franchisees and customers recently, including new menu items like the KPop Demon Hunters meal and a McValue program. He admitted it's tough to drive awareness when introducing too many promotions in quick succession.