McDonald's US Sales Growth Slows as Value Push Falters

McDonald's US sales growth slowed in the second quarter, falling short of expectations. The company cited 'execution lapses' for its value push aimed at lower-income consumers who have been cutting back on restaurant spending. CEO Chris Kempczinski said that weak promotion of value deals and a decrease in digital promotions contributed to a drop in visits from loyal customers.

The company reported comparable sales growth of 0.8% in the US, below analysts' estimates of 1.06%. This is down from a 2.5% pace of growth in the US last year. Higher prices for basic goods and fuel have left lower-income consumers with less money to spend on eating out.

To address this issue, McDonald's has begun restoring national digital offers and rolling out more targeted promotions for loyalty members. The company has also redirected marketing spending to proven value platforms. McDonald's shares were marginally higher in early trading after the company reported better-than-expected quarterly profit.