Skift Take
McDonald's willingness to try multiple new things at the same time is rare for a giant of its size, and it appears to be paying off.
— Jason Clampet
McDonald’s Corp.’s global growth continues at a steady clip, even as it feels the heat from fast-food rivals in the U.S.
The company posted global same-store sales growth that topped analysts’ projections after fresh beef and a revamped discount menu drew customers. The world’s biggest restaurant chain by sales also is adding delivery across the globe to bring food to customers increasingly looking for convenient meal options. Same-store sales rose 4 percent globally last quarter, compared with estimates of 3.6 percent. In the U.S., the key metric missed forecasts, rising 2.6 percent.
Shares swung between gains and losses in premarket trading Thursday. The shares had fallen 7.7 percent this year through Wednesday’s close.
McDonald’s has been on a mission to improve its burgers with the introduction earlier this year of fresh Quarter Pounder sandwiches across the U.S., where the chain has about 14,000 locations. Same-store sales growth fell domestically from first-quarter rates.
Excluding some items, profit amounted to $1.99 a share in the quarter that ended June 30, compared with the $1.93 average of analysts’ estimates. Revenue was $5.35 billion, exceeding projections for $5.33 billion.
Breakfast Push
The company said in June that it was reducing corporate headcount to further trim expenses, and that it would incur $80 million to $90 million in charges related to severance pay and the closing of field offices in the second quarter.
McDonald’s has been pushing breakfast items to lure customers in the U.S. After introducing all-day breakfast in 2015, McDonald’s has refocused its efforts on getting more diners in the morning, when competition is particularly steep, Chief Executive Officer Steve Easterbrook said in April.
Dunkin’ Donuts also offers breakfast sandwiches during all hours, and just introduced doughnut fries for $2. Starbucks Corp., which has about the same number of U.S. locations as McDonald’s, has been improving its food and trying to lock customers in with a growing rewards program.
The Golden Arches is trying to improve its image among diners. Along with fresh beef, the chain is starting to phase out plastic straws in some European markets as concerns about consumer waste increase.
©2018 Bloomberg L.P.
This article was written by Leslie Patton from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].
