McDonald’s revenue misses estimates as chain looks to accelerate U.S. growth
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- McDonald's posted Q2 revenue of $7.10 billion, missing the $7.13 billion Wall Street estimate, though adjusted EPS of $3.38 topped the $3.32 expected.
- McDonald's U.S. same-store sales rose just 0.8% in the quarter, with traffic to domestic restaurants falling even as the average check increased.
- Skye Anderson assumed the role of president of McDonald's USA on Tuesday, succeeding Joe Erlinger, who led the division for more than six years.
- Anderson, a 26-year McDonald's veteran, previously served as COO of McDonald's USA and led its Global Business Services unit before that.
- McDonald's international operated markets segment posted 1.5% same-store sales growth, while its international developmental licensed markets rose 1.9% — both outpacing the U.S.
- Quarterly net income climbed to $2.36 billion ($3.32 per share), up from $2.25 billion ($3.14 per share) a year earlier, as net revenue rose 4%.
- CEO Chris Kempczinski said the company sees an opportunity to "raise the bar in the U.S. and accelerate performance in our largest market," citing tough comparisons to last year's Minecraft movie tie-in.
- Global same-store sales ticked up 1.3%, meeting StreetAccount expectations.
Why it matters: The 0.8% U.S. same-store sales growth — versus 1.5%-1.9% in international segments — comes as McDonald's installed a 26-year insider to lead its home market, with CEO Kempczinski publicly calling for accelerated U.S. performance.
