McDonald’s Reports Stronger Second-Quarter Earnings While U.S. Sales Growth Slows Amid Consumer Spending Caution

McDonald’s delivered robust second-quarter financial results Tuesday, though momentum in its domestic market has decidedly weakened as American consumers pull back on discretionary spending. The Chicago-based chain reported net income of $2.36 billion, or $3.32 per share, for the three months ended June 30, compared with $2.25 billion, or $3.14 per share, in the same period a year earlier. On an adjusted basis excluding one-time items, earnings reached $3.38 per share, surpassing analyst expectations of $3.32 per share.

Domestic performance showed clear signs of deceleration, with same-store sales in the United States rising just 0.8% — a sharp pullback from 2.5% growth in the prior year when the company benefited from a promotional tie-in with “A Minecraft Movie.” Globally, same-store sales increased 1.3%, reflecting mixed results across regions. Revenue climbed to $7.1 billion from $6.84 billion year-over-year, though the figure fell slightly short of Wall Street’s projection of $7.13 billion.

The company had previously warned that elevated gasoline prices and geopolitical tensions involving the United States and Iran posed risks to consumer spending patterns. Regular gasoline prices peaked at $4.56 per gallon on May 21, according to AAA data, adding to inflationary pressures consumers face at the pump and elsewhere.

McDonald’s announced that Skye Anderson will assume the role of president of McDonald’s USA, taking the helm of domestic operations during a period of softening sales growth. Stock price gains of 1.7% in premarket trading reflected investor confidence in the company’s financial performance despite the challenging domestic environment.