McDonald’s shares went up on Tuesday after the company reported second-quarter profits that were better than expected. The company also named a new leader for its U.S. operations.
The stock rose 1.8% in premarket trading, recovering from a 2% drop on Monday. Investors had been cautious, expecting inflation to hurt consumer spending. Even with this gain, McDonald’s shares are still down 13% for the year, while the S&P 500 has gone up.
McDonald’s reported adjusted earnings of $3.38 per share, up from $3.19 last year and higher than Wall Street’s estimate of $3.32. Net revenue increased by 3.7% to $7.1 billion, just below the expected $7.13 billion, according to FactSet.
Worldwide comparable sales went up 1.3%, matching expectations. In the U.S., same-store sales grew by 0.8%. Total global sales, including both company-owned and franchised locations, increased 4% on a constant-currency basis to $37 billion for the quarter.
These results show that McDonald’s is making progress after a tough period in 2024 and early 2025. During that time, many consumers, especially those with lower incomes, spent less at restaurants because they felt McDonald’s was more expensive than its competitors.
CEO Chris Kempczinski said the company saw positive sales growth in every segment this quarter and took strong steps to improve how it operates as it prepares for long-term growth.
With the earnings report, McDonald’s also named Skye Anderson, who has worked at the company for 26 years, as the new president of its U.S. business. Kempczinski said Anderson will help speed up progress in the U.S. market. She takes over from Joe Erlinger, who is leaving after more than 20 years at McDonald’s.
