2023-07-27 07:16:32 ET
McDonald's Corporation ( NYSE: MCD ) trades higher in early trading on Thursday after posting its Q2 earnings report that included beats on the revenue and EPS lines.
Global comparable sales were up 11.7% for the restaurant giant vs. +9.4% consensus. Notably, all segments showed double-digit growth during the quarter.
U.S. comparable sales were up 10.3% vs. +9.1% consensus. Comparable sales results benefited from strategic menu price increases and positive guest counts. Successful restaurant level execution, culturally relevant brand and marketing campaigns and continued digital and delivery growth contributed to strong comparable sales results.
The International Operated Markets segment reported a 11.9% increase during the quarter vs. +8.3% consensus. The segment performance was driven by strong comparable sales in most markets, led by the U.K. and Germany.
The International Developmental Licensed Markets segment saw a 14.0% comparable sales increase vs. +11.3% consensus. McDonald's ( MCD ) said the quarter reflected strong comparable sales in all geographic regions, led by China.
Consolidated operating income increased 81% during the quarter and was 82% higher on a constant currency basis. Those results included $18M of pre-tax restructuring charges related to the company's internal effort to modernize ways of working (Accelerating the Organization). Net income was $2.310B vs. $1.119B a year ago.
Looking ahead, McDonald's ( MCD ) expects about 1,500 net restaurants for the year. The restaurant operator guided for a full-year operating margin of around 45%.
CEO update: "Our second quarter results reflect consistently strong execution of our Accelerating the Arches strategy, with global comparable sales growth of 11.7% and double-digit comparable sales growth across each of our segments... The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations. While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow"
Shares of MCD rose 2.21% in premarket action to $298.20 vs. the 52-week trading range of $230.54 to $299.35.
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McDonald's shows off global firepower by topping comparable sales estimates in all regions