McDonald's Q2 U.S. Sales Slow to 0.8%, EPS Beat Overshadowed by Revenue Miss
MCD is trading near its 52-week low of $260.96 (3.2% above the low).
Summary
McDonald's Q2 results were mixed: EPS of $3.38 beat the $3.32 consensus, but revenue of $7.10B missed the $7.13B estimate. U.S. comparable sales grew just 0.8%, a sharp slowdown from 2.5% a year ago and below the 1.06% consensus, as lower-income consumers pulled back. International same-store sales rose 1.5%, meeting expectations. The company announced an immediate leadership change, with Skye Anderson replacing Joe Erlinger as President of McDonald's USA. A new summer drink lineup was also launched to drive traffic. The stock has declined 13% over the past year, trading near its 52-week low. This follows the earlier Reuters report on the sales miss, adding granular financials and the executive shake-up.
At the time of this announcement, MCD was trading at $269.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $191.4B. The 52-week trading range was $260.96 to $341.75. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BayStreet.