McDonald's Q2 US Sales Miss as Value Deals Fail to Lure Diners
MCD is trading near its 52-week low of $260.96 (4.3% above the low).
Summary
McDonald's Q2 U.S. comparable sales grew just 0.8%, missing the 1.06% consensus and a sharp slowdown from 2.5% a year ago. Global comps rose 1.3%, down from 3.8%, as value promotions failed to offset cautious consumer spending. Adjusted EPS of $3.38 beat last year's $3.19, but the top-line miss in its largest market is the focus. The company also named Skye Anderson to lead the U.S. business, replacing Joe Erlinger. The stock is already trading near 52-week lows, and this report confirms the demand challenges CEO Kempczinski warned about in May. McDonald's filed an 8-K related to Regulation FD.
At the time of this announcement, MCD was trading at $272.16 on NYSE in the Trade & Services sector, with a market capitalization of approximately $188.4B. 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: Reuters.