McDonald's Corporation ( NYSE: MCD ) shares fluctuated prior to Tuesday’s market open after posting a mixed earnings report for the second quarter.
For the reported quarter, the Chicago-based restaurant chain posted $2.55 in earnings per share alongside $5.72B in revenue. Analysts had anticipated $2.47 and $5.81B, respectively. Global comparable sales rose 9.7%, bolstered by a double-digit bounce in sales across international operated markets. Meanwhile, “strategic menu price increases” were credited with carrying profits above expectations.
“The McDonald's System continues to demonstrate strength and resiliency," CEO Chris Kempczinski said. "Our second quarter performance reflects outstanding execution against our Accelerating the Arches strategy. By focusing on our customers and crew, enabled by a rapidly growing digital capability, we delivered global comparable sales growth of nearly 10%.”
Still, he noted that competition remains robust and that economic concerns are likely to impact the fast-food chain. In particular, currency impacts and slower sales in China due to COVID lockdowns helped drive the disappointing revenue report despite broadly stronger international sales. Consolidated revenues decreased 3% from the prior year, with a 6% impact of currency impacts blamed for the decline.
Elsewhere, the company incurred a $1.2B charge related to the sale of its Russian business .
Shares rose 0.65% shortly before Tuesday’s market open, ticking upward from a slight decline in the immediate aftermath of the report .
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McDonald's revenue slips despite strong international sales