McDonald’s delivered mixed financial results for the second quarter ended June 30, with the company reporting net income of $2.36 billion, or $3.32 per share, compared with $2.25 billion, or $3.14 per share, in the prior-year period. On an adjusted basis excluding restructuring charges and other items, the company earned $3.38 per share. Net revenue increased 4% to $7.1 billion.
The company’s global same-store sales rose 1.3%, meeting expectations. However, performance in the U.S. market showed signs of deceleration. Domestic same-store sales increased just 0.8%, driven by higher average transaction values offset by declining foot traffic at restaurants. The company attributed some of the challenging comparison to the prior year’s launch of a limited-time meal promotion tied to the “Minecraft” movie. Domestically, McDonald’s rolled out a new lineup of refreshers and crafted sodas in early May.
International operations provided a brighter picture for the company. The international operated markets segment posted same-store sales growth of 1.5%, while the international developmental licensed markets division reported same-store sales increases of 1.9%.
In response to the softer U.S. performance, McDonald’s announced leadership changes in its domestic business. Skye Anderson, a 26-year veteran of the company who previously served as chief operating officer for McDonald’s USA, assumed the role of president of the U.S. business effective Tuesday. She replaces Joe Erlinger, who led the division for more than six years. CEO Chris Kempczinski stated that the company sees an opportunity to strengthen its largest market and accelerate performance in the U.S., noting that its strategic approach has proven effective globally.
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