Reportedly, McDonald’s Corporation (MCD) released second-quarter earnings, beating market estimates as the fast-food giant’s February launched chicken sandwich and its “famous orders” promotion with K-pop group BTS, which includes an order of McNuggets and special sauces boosted U.S. same-store sales. McDonald’s reported revenue of $5.89 billion versus $5.6 billion expected.
Quarter earning highlights:
- The U.S. same-store sales jumped 25.9% in the quarter.
- Net income of $2.22 billion, or $2.95 per share was reported, up from $483.8 million, a year earlier.
- McDonald’s earned $2.37 per share, beating the analyst estimates of $2.11 per share, excluding strategic gains and U.K. income tax benefits.
- Net sales increased 57% to $5.89 billion, beating expectations of $5.6 billion.
- Global same-store sales climbed 40.5% from a year earlier and 6.9% on a two-year, pre-pandemic basis.
- McDonald’s witnessed a strong recovery in many regions, outside the U.S., its international operated markets unit, which includes the United Kingdom and France, reported same-store sales growth of 75.1%. McDonald’s said that easing restrictions and fewer temporary closures helped sales for that segment.
- The division, which includes Japan and Brazil, witnessed positive same-store sales year on year across all of its regions.
- McDonald raised its full-year forecast and now expects systemwide sales growth in the mid-to-high teens, up from its prior outlook of mid-teens.
CEO Chris Kempczinski informed that the company is seeing “muted inflation” of 1% to 2% this year. Prices have risen 6% compared with a year ago, caused by increased labor and food costs. The company hopes to manage inflation in 2022 by taking advantage of its large size and relationships with suppliers.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page.
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