McDonald's Global Same-Restaurant Sales Beat Estimates
McDonald's Corp topped global same-restaurant sales estimates for the second quarter, with strength in international markets helping offset weakness in the United States.
Restaurant chains in the United States have been fighting for a bigger share of a slow-growing restaurant marketplace by offering dollar menus, discounts on beverages and limited-time menu items as well as freshly prepared meals to diners.
McDonald's quarterly sales at its US restaurants open for at least 13 months rose 2.6%, missing the average analyst estimate of 2.96% rise.
In contrast to its slowing US business, same-store sales for the company's international lead markets - comprising Australia, Canada, France, Germany and the United Kingdom - rose 4.9%, trouncing analysts' expectation of a 3.94% gain.
This helped McDonald's worldwide sales at stores open at least 13 months to rise 4% and top the average analyst estimate of 3.60%, according to Thomson Reuters I/B/E/S.
Net income rose to about $1.50 billion, or $1.90 per share, in the second quarter ended June 30 from about $1.40 billion, or $1.70 per share, a year earlier.
Excluding items, the company earned $1.99 per share, beating the estimate of $1.92.
Revenue fell 12% to $5.35 billion, but edged past expectations of $5.32 billion.
The burger giant's stock is down 8% since the start of the year, underperforming the S&P 500 Restaurants sub index . In the same period last year, McDonald's stock had risen over 30%.