Latest news with #Minecraft'Movie
New York Post
6 days ago
- Business
- New York Post
McDonald's sales bounce back from drastic declines as value meals win over anxious US customers
McDonald's reported better-than-expected earnings on Wednesday — as the fast-food chain's push into value meals and promotional tie-up attracted budget-conscious diners amid economic uncertainty. The Chicago-based company said same-store sales increased 3.8% in the second quarrter rose — the biggest jump in nearly two years years and easily topping estimates of 2.4% increase by LSEG analysts. McDonald's — which found success last year by offering $5 meal deals and the buy-one, add-one for $1 offer — launched a limited-time Happy Meal offer for kids and adults tied to the 'Minecraft' Movie promotion in April. In May, it introduced McCrispy Chicken Strips as a permanent menu item. 3 McDonald's saw a 3.8% rise in global same-store sales in the second quarter. Getty Images The moves helped the company 'draw 're-engage with critical' low-income diners, as they typically visit the Big Mac chain more frequently than middle- and high-income groups, according to McDonald's CEO Chris Kempczinski. 'This bifurcated consumer base is why we remain cautious about the overall near-term health of the US consumer,' he said Wednesday during an earnings call. McDonald's outperformed the rest of the industry in the second quarter with visits jumping 0.8%, above a 0.7% dip in the overall quick-service restaurant sector, according to data from which tracks foot traffic at retail locations. 'While rivals like Yum Brands and Chipotle struggled with consumer pullback, McDonald's played to its strengths by leaning into value, nostalgia and limited-time promotions,' eMarketer analyst Zak Stambor said. Same-store sales in the US – which is McDonald's largest market – rose 2.5%, above a 0.7% decline in the same period last year. It represented a massive rebound from a steep 3.6% drop last quarter, which was the worst decline since 2020. 3 McDonald's sales beat was driven by a rebound in US demand as the company focused on value messaging. Getty Images 3 Same-store sales rose 2.5% in the US, representing a massive rebound from the quarter before. Getty Images McDonald's performed even better outside the US, with its international developmental licensed markets division – which includes Japan and China – reporting same-store sales growth of 5.6%. Same-store sales in its international operated markets segment – which includes the UK, Australia and Canada – rose 4%. Earnings per share jumped 7% from the year before to $3.19 in the second quarter, beating Wall Street estimates of $3.15. McDonald's reported revenue of $6.84 billion, above projections of $6.7 billion. Executives said McDonald's results will likely be even stronger in the second half of the year, especially since the fourth quarter will probably far outperform compared to last year – when a widespread E. coli outbreak throttled demand.
Business Times
6 days ago
- Business
- Business Times
McDonald's global sales top estimates as affordable meal options boost demand
[CHICAGO] McDonald's global comparable sales beat Wall Street expectations for second quarter, as affordable meal bundles and promotions drew in budget-conscious diners looking to stretch their US dollars amid persistent economic uncertainty. Strong demand in the US and international markets powered a 3.8 per cent rise in global same-store sales, above expectations of a 2.4 per cent rise, according to data compiled by LSEG. Shares of the Chicago, Illinois-based company rose about 3 per cent in premarket trading. Fast-food chains have seen competition heat up as companies such as McDonald's, Domino's Pizza and Taco Bell owner Yum Brands double down on value meals to counter a slowdown in demand, mainly among the lower-income households. To improve sales, McDonald's launched a limited-time Happy Meal offer for kids and adults tied to the 'Minecraft' Movie promotion in April. In May, it introduced McCrispy Chicken Strips as a permanent menu item. These promotions are in addition to the US$5 meal deal and the buy-one, add-one for US$1 offers launched last year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Menu innovation and promotions had also helped Domino's report upbeat US same-store sales, while weakening demand hurt sales at Yum Brands and Chipotle Mexican Grill. For the second quarter, McDonald's outperformed the wider quick-service restaurant category, with visits rising 0.8 per cent from a year ago and compared to a 0.7 per cent dip in the QSR space, data from foot traffic tracking firm showed. The launch of Snack Wraps on July 10 boosted visits to US stores at the start of the third quarter, analyst RJ Hottovy said. Comparable sales in US, McDonald's biggest market, grew 2.5 per cent, compared with a 0.7 per cent decline a year ago. Sales in its business segment where restaurants are operated by local partners, jumped 5.6 per cent, led by Japan, while international markets sales rose 4 per cent, owing to a demand recovery in the UK, Canada and France. Adjusted net income came in at US$2.29 billion, or US$3.19 per share, up 7 per cent from a year ago. REUTERS
