Overview

• McDonald’s global same-store sales climbed 3.8% in the second quarter, surpassing the 2.4% consensus forecast, while U.S. comparable sales rose 2.5%.
• The chain leveraged value initiatives in Q2 including April’s Minecraft Movie Happy Meal tie-in and May’s launch of McCrispy Chicken Strips to draw budget-conscious consumers.
• In early July, McDonald’s relaunched its Snack Wrap, which spurred a measurable rise in U.S. store visits at the start of the third quarter.
• Yum Brands missed second-quarter sales and profit estimates amid higher ingredient costs, and Taco Bell’s U.S. same-store growth slowed to 4%, underscoring widening performance gaps.
• Chief Executive Chris Kempczinski warned that reengaging lower-income diners is critical as real incomes fall, prompting McDonald’s and peers to extend $5 meals and buy-one-add-one promotions.