McDonald’s reported a strong quarter, with US sales bouncing back after two periods of decline. Promotions like the $5 meal deal and new menu items helped attract customers. However, the company remains concerned about low-income consumer trends. These consumers typically visit more often than higher-income groups. Their reduced activity impacts overall sales growth potential in the US market.
CEO Chris Kempczinski said reconnecting with low-income customers remains a top priority. The company is working with US franchisees to improve affordability. This includes newer offers like the Daily Double burger and the return of Snack Wraps. McDonald’s wants to ensure core items stay within reach for price-sensitive customers. The goal is to drive higher traffic and restore frequency.
Same-store sales in the US rose 2.5%, reversing two straight quarters of decline. This metric only includes locations open for at least one year. McDonald’s also outperformed its competitors in both traffic and sales during the quarter. New product launches like the McCrispy Chicken Strips and Minecraft meal helped boost excitement. These items created buzz and helped lift domestic performance.
Globally, McDonald’s saw even stronger results. Same-store sales grew 5.6% in international licensed markets such as China and Japan. In company-operated markets like the UK, Australia, and Canada, same-store sales increased by 4%. Executives credited better value perception and strong brand positioning in these regions. The global business continues to drive steady momentum across key territories.
Total revenue rose 5% to $6.84 billion during the quarter. Net income reached $2.25 billion, up from $2.02 billion the previous year. On an adjusted basis, earnings per share hit $3.19. Marketing campaigns and menu innovation contributed to a 6% increase in systemwide sales. Executives expect stronger results in the second half of the year.
Despite these gains, McDonald’s warned that industry-wide traffic among low-income consumers remains weak. CEO Kempczinski pointed out double-digit declines in this segment versus the prior year. The company plans to continue pushing affordable offerings to address this trend. Snack Wraps, recently relaunched at $2.99, have shown early success. Franchisees voted to maintain the price for now.
McDonald’s believes the competitive US fast-food market makes it harder to stand out. In contrast, international markets offer more space for brand distinction. Consumer feedback also shows improved scores for affordability overseas. Executives remain confident in the global strategy while closely watching US trends. They plan to focus on value to maintain growth.
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