McDonald's posts strong second quarter profit, names new chief of US operations
McDonald's reported strong second-quarter profits but noted a slowdown in U.S. sales growth as consumers become more cautious with spending. The company plans to address this by increasing digital offers and focusing on value-oriented menu items.
Why it matters
McDonald's performance serves as a bellwether for consumer sentiment and the impact of inflation on the fast-food industry.
McDonald's posted a strong profit in its second quarter and named a new head of the U.S. market with sales at home under pressure as many Americans grow increasingly cautious about spending.
Same-store sales, or sales at locations open at least a year, edged up 0.8% in the U.S. That’s a sharp slowdown from the 2.5% increase a year ago, when the company had a big win with a meal tied to “A Minecraft Movie.” Global same-store sales rose 1.3%.
CEO Chris Kempczinski said during the company's earnings call on Tuesday that the U.S. performance was partly hurt by inconsistent execution across its restaurants and marketing programs that didn't meet expectations.
“We don’t have a strategy problem," he said. "We simply didn’t execute at the level we needed to in the second quarter.”
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