McDonald’s Financial Results Top Wall Street Estimates

McDonald’s (MCD) has delivered second-quarter financial results that topped Wall Street forecasts across the board.
The Chicago-based quick service restaurant chain reported earnings per share (EPS) of $3.19 U.S., which was ahead of the consensus estimate of $3.15 U.S.
Revenue in the April through June quarter totaled $6.84 billion U.S., which was also ahead of the $6.70 billion U.S. expected on Wall Street. Sales were up 5% from a year ago.
Management said product promotions helped its U.S. restaurants rebound from a downturn earlier in the year.
Specifically, marketing and new menu items led to a 6% increase in system sales for McDonald’s during the quarter.
The burger chain’s sales also got a lift from a tie-in meal with the “Minecraft” movie and the launch of McCrispy Chicken Strips.
Same-store sales, a metric that tracks the performance of restaurants that have been open at least one year, increased 3.8% during Q2, the chain’s largest increase in nearly two years.
McDonald’s U.S. restaurants saw same-store sales grow by 2.5% year-over-year, reversing two consecutive quarters of domestic declines.
Outside the U.S., demand for the company’s Big Macs and fries was even stronger, with international same-store sales growth of 5.6%.
The international segment saw strong gains in key markets such as the United Kingdom (U.K.), Australia and Canada.
MCD stock is up 3% on news of the strong Q2 print and is up about 5% overall this year at $307.85 U.S. per share.