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McDonald’s Earnings Report: What to Expect

by Nick
McDonald’s

McDonald’s will announce its second-quarter earnings on Monday, with its shares down 15% this year. The company has alerted investors that it is contending for a reduced customer base. Wall Street expects McDonald’s to report flat U.S. same-store sales, according to StreetAccount estimates.

Anticipated Figures

Here are the expectations from Wall Street analysts surveyed by LSEG:

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Earnings per share: $3.07

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Revenue: $6.61 billion

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McDonald’s stock decline is driven by investor concerns over consumer spending and the health of the restaurant industry.

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Strategies And Challenges

McDonald’s executives have noted that restaurants are competing for fewer customers. Many chains, including McDonald’s, are introducing value meals to attract customers. In the U.S., McDonald’s has offered a $5 meal deal over the past month to increase traffic and plans to extend this promotion.

These discounts, however, were only implemented towards the end of the second quarter. Wall Street expects the company to report flat U.S. same-store sales for this period, according to StreetAccount estimates. Last year, McDonald’s saw a 10.3% increase in domestic same-store sales, boosted by a popular promotion featuring mascot Grimace.

International Market Performance

Outside the U.S., McDonald’s may still face declining sales in the Middle East due to boycotts. At the beginning of the second quarter, the company acquired the 225 restaurants operated by its Israeli franchisee.

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