McDonald’s same-store sales grew 0.8% in the second quarter
McDonald’s reported mixed second-quarter results on Tuesday, beating profit expectations but falling slightly short on revenue as its US business struggled to attract more customers.
US same-store sales grew 0.8% in the second quarter, the company said yesterday, decelerating from 3.9% in the previous quarter and falling short of the 1.06% analysts had expected.
The sales were mainly driven by higher menu prices rather than an increase in customer visits, showing that value-conscious consumers are still limiting their spending.
Executives acknowledged that the company’s affordable meal strategy has not been rolled out consistently across US locations. Since most restaurants are run by franchise owners who set their own prices, customers have seen different deals depending on where they eat.
That inconsistency, along with fewer digital promotions and slower service caused by multiple product launches, hurt customer satisfaction and sales.
Many franchisees skipped the under-$3 menu and some increased prices, while McDonald’s also scaled back app promotions and discontinued its Buy One, Get One for $1 offer.
To improve performance, the company named its COO Skye Anderson as the new president of its US business, replacing longtime US business head Joe Erlinger.
The chain also plans to expand its drink menu further with Red Bull Energizers in the coming weeks.
Looking ahead, McDonald’s expects its US business to recover gradually and now aims to operate 50,000 restaurants worldwide by the end of 2028, one year later than previously planned because of inflation and higher construction costs.
To reverse the slowdown, the Golden Arches says it is bringing back more app-based discounts, leaning into proven value offerings like Extra Value Meals.
Shares of the company closed about 1% higher after the earnings report.