McDonald's Corporation reported second-quarter financial results, highlighting a 4% growth in system-wide sales in constant currency and a 1.3% increase in global comparable sales. The company noted that while international markets performed broadly in line with expectations, the U.S. market slowed significantly, posting comparable sales growth of only 0.8% for the quarter.
Management attributed the U.S. underperformance to inconsistent execution of new value offerings, specifically the new under $3 everyday affordable price (EDAP) menu. The company stated that these execution factors accounted for approximately two-thirds of the customer traffic shortfall. Additionally, the business was impacted by a slow start to the quarter following the highly successful Minecraft campaign last year and an underperforming FIFA campaign in June.
On the operational side, executives noted that restaurant teams were overwhelmed by too many deployments in the quarter, leading to less efficient operations and longer service times. To address these challenges, McDonald's announced a new strategy called 'McDonald's Next,' which focuses on elevating food quality, customer experience, and operational simplification. The company also plans to launch more national digital flash offers and target loyal customers with personalized offerings.
Looking ahead, McDonald's provided guidance to reach 50,000 restaurants globally by 2028, a slight delay from previous plans. The company also highlighted ongoing investments in digital platforms and delivery to enhance customer engagement. On the leadership front, Skye Anderson was appointed as the new President of McDonald's U.S., bringing extensive experience and a focus on driving operational improvements.
For the first half of the year, system-wide sales grew 5% in constant currency, and global comparable sales increased 2.5%. Adjusted earnings per share for the second quarter were $3.38, representing a 5% increase on a constant currency basis versus the prior year.
