McDonald’s Tops Earnings Expectations in Q2

McDonald’s (NYSE: MCD), reported better-than anticipated second quarter earnings that topped analysts forecasts and surpassed revenue expectations on Wednesday. The company attributed much of its success to it’s new Crispy Chicken Sandwich, which it says helped U.S. same-store sales outdo 2019 metrics by double digits. Nevertheless, shares fell 1.7% in premarket trading.

U.S. same-store sales rose 25.9% throughout the quarter and 14.9% during a two-year basis. Along with its new chicken sandwich, the company also credited its “famous orders” promotion with K-pop group BTS, featuring an order of Mcnuggets and special sauces. 

The fast food chain reported earnings of USD2.37 a share, compared to the expected USD2.11 per share. Revenue amounted to USD5.89 Billion, higher than analysts anticipated USD5.6 Billion. Global same-store sales increased 40.5% from the previous year, as well as 6.9% on a two-year, pre-pandemic basis.

“Our performance is a continued demonstration of the broad-based strength and resiliency of our business as global comp sales in the second quarter increased nearly 7% over 2019. For 65 years, we’ve created iconic experiences for billions of people around the world. Along the way, we’ve always focused on following our customers’ needs, finding the most convenient and engaging ways for them to enjoy McDonald’s. It’s clear that our next chapter will be driven by our leadership in digital,” said McDonald’s President and Chief Executive Officer Chris Kempczinski.

Kempczinski told analysts that approximately 70% of the company’s dining rooms have already reopened. Furthermore, depending on the ongoing pandemic, all U.S. dining rooms should be accessible by Labor day. 

“While the delta variant has brought more stops and starts to the Covid story around the world, people are venturing out and establishing new routines,” Kempczinski said. “That includes a return to in-person dining.” 

According to CFO Kevin Ozan, McDonald’s is carefully monitoring Covid resurgences worldwide. Meanwhile, the company has decided to raise its full-year forecast and is anticipating a systemwide sales increase in the mid-to-high teens.