McDonald's taps Skye Anderson as U.S. sales miss estimates
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- McDonald's reported Q2 revenue of $7.10 billion versus the $7.13 billion analysts expected, though adjusted EPS of $3.38 beat the $3.32 estimate, and global same-store sales rose 1.3%.
- McDonald's U.S. same-store sales grew just 0.8% as traffic fell even though average check rose, with CEO Chris Kempczinski blaming inconsistent execution of the chain's value strategy rather than the playbook itself.
- Skye Anderson, a 26-year McDonald's veteran and former COO of McDonald's USA, assumed the role of U.S. president on Tuesday, succeeding Joe Erlinger, who led the division for more than six years.
- Franchisees implemented the 'under $3 menu' at only 60% to 65% of locations, and the loose $3 ceiling led some operators to raise prices on items like small fries while McDonald's pulled back on national digital offers that feed its loyalty program.
- McDonald's expects U.S. same-store sales to return to target trajectory by 2027, while international operated markets grew 1.5% and international developmental licensed markets grew 1.9% in the quarter.
- McDonald's pushed its target of 50,000 global restaurants from the end of 2027 to the end of 2028, with CFO Ian Borden citing inflation in development costs and the current consumer environment.
Why it matters: With only 60-65% of U.S. franchisees on board with the under-$3 menu and traffic declining in McDonald's home market, the chain installed a 26-year operator as U.S. president to fix execution, while delaying its 50,000-restaurant global target by a year to end of 2028.
