McDonald's Earnings Miss as Higher Prices Drive Sales, Foot Traffic Lower

McDonald's (MCD) second-quarter net fell short of analysts' estimates Monday arsenic little ft postulation drove comparable shop sales down from past year's levels.

The accelerated nutrient elephantine reported $6.49 cardinal successful full revenue, astir identical to nan 2nd 4th of 2023. Despite nan akin revenue, McDonald's nett income fell 12% year-over-year to $2.02 billion.

Analysts had expected gross to turn to $6.63 billion, while profits were projected to gaffe by a smaller magnitude to $2.24 billion, according to statement estimates compiled by Visible Alpha.

Comparable Sales Decline arsenic Consumers Are Still Weary of High Prices

McDonald's world comparable income fell 1% from past twelvemonth arsenic income decreased successful nan U.S. and abroad. The institution said ft postulation fell successful U.S. locations arsenic prices rose, while little income successful respective countries for illustration France and China offset betterment successful Japan and Latin America.

"As consumers are much discriminating pinch their spend, we are focused connected nan outstanding execution of delivering reliable, mundane worth and accelerating strategical maturation drivers for illustration chickenhearted and loyalty,” McDonald's Chief Executive Officer (CEO) Chris Kempczinski said.

Customers increasing weary of higher prices has negatively impacted McDonald's income this year, starring nan institution to motorboat a value repast promotion past month. While it only contributed to nan past fewer days of second-quarter results and will chiefly effect Q3 figures, recent reports person indicated that McDonald's "$5 Meal Deal" promotion has been a occurrence and could proceed into August.

Shares of McDonald's person mislaid astir 15% of their worth truthful acold this twelvemonth but are up 1% earlier nan opening bell.