McDonald’s missed estimates on earnings per share and revenue last quarter, though sales grew worldwide.
Earnings per share were US$3.22, flat year-over-year and below LSEG estimates of $3.33. Revenue was up 3% to $7.08 billion, but below estimates of $7.1 billion.
“We increased global Systemwide sales by 6% and grew comp[arable] sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment,” said McDonald’s CEO Chris Kempczinski.
“We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors.”
Comparable sales rose by 3.6% globally, and United States sales increased by 2.4%. International Operated Markets comparable sales fell by 4.3%, and International Developmental Licensed Markets comparable sales were up 4.7%.
Sales growth outside the U.S. was driven by Germany, Australia, and Japan, though all regions reported positive comparable sales. McDonald’s comparable sales one year ago had fallen by 1.5% worldwide.
According to Kempczinski, traffic among lower-income customers decreased by almost double-digit percentages across the fast food industry during the quarter due to economic pressures. Traffic from higher-income customers has continued to rise.
The company’s operating income grew by 5% year-over-year to $3.36 billion last quarter.
Net income was up 1% to $2.28 billion. The company took a net charge of $39 million for the quarter to restructure and modernise workflows, it said.
McDonald’s share price (NYSE: MCD) closed at $305.67, up 2.2% from its previous close at $299.21. Its market capitalisation is $218.13 billion.
