McDonald’s on Friday posted its biggest rise in comparable sales in two years, boosted by refurbished restaurants and refreshed menus.
The second-quarter results are the latest in a series of positive signals that consumer companies are sending about the health of the US economy. The Chicago-based group, which operates 38,000 outlets globally, joins other big names in US food and drink that have also reported upbeat earnings reports in recent days. Both Starbucks and Coca-Cola lifted their outlook for annual revenues and profits.
McDonald’s earnings came as US data also published on Friday highlighted how personal consumption is helping fuel domestic economic growth.
Consumers have also been attracted by special offers, notably its two-items-for-$5 “Mix and Match” deal. McDonald’s has also been rolling out home delivery and this month unveiled a partnership with DoorDash to deliver in Houston, Texas.
McDonald’s was “putting our customers at the centre of all our efforts”, Mr Easterbrook said in a statement on Friday. He added it was the 16th consecutive quarter the company had generated positive comparable sales, a metric that counts restaurants open at least 13 months and strips out foreign exchange.
Sales were powered by a 5.7 per cent comparable sales rise in McDonald’s all-important domestic market, where the company has faced intense competition for fast food.
In the group’s “international operated” division — overseas markets in which McDonald’s both operates its own restaurants and has licensees — comparable sales rose 6.6 per cent, driven by the UK, France and Germany. The global like-for-like sales rise was stronger than the 4.95 per cent analysts had pencilled in, according to S&P Capital IQ data. Shares rose 1.7 per cent in New York on Friday morning.
McDonald’s produced net income of $1.52bn in the quarter compared with $1.5bn last time, equivalent to diluted earnings per share of $1.97. Revenue of $5.34bn was 6.5 per cent higher from a year ago on a like-for-like basis.