McDonald’s reported Wednesday that the chain’s crispy chicken sandwich helped drive U.S. sales in the same store double-digit above 2019 levels.
The company’s shares lost around 1% in pre-trading.
Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:
- Earnings per share: $ 2.37 adjusted versus $ 2.11 expected
- Revenue: $ 5.89 billion versus an expected $ 5.6 billion
The fast food giant reported net income of $ 2.22 billion, or $ 2.95 per share, for the second quarter, compared to $ 483.8 million, or 65 cents per share, a year earlier.
Excluding strategic profits and UK income tax breaks, McDonald’s earned $ 2.37 per share, beating the $ 2.11 per share that Refinitiv surveyed analysts had expected.
Net sales rose 57% to $ 5.89 billion, beating expectations of $ 5.6 billion. Global sales in the same business increased 40.5% year over year and 6.9% on a two-year basis.
US revenue increased 25.9% for the quarter and 14.9% on a 2-year basis. The company had strong sales of its new chicken sandwich, which launched in February, and its “famous orders” promotion with K-pop group BTS, which included an order for McNuggets and specialty sauces.
Outside the US, McDonald’s has seen strong recovery in many regions. The internationally operating market segment, which includes Great Britain and France, recorded sales growth of 75.1% compared to the previous year or 2.6% on a two-year basis. McDonald’s said easing restrictions and fewer temporary closings have helped sales for that segment.
In the international development license markets segment, sales in the same business on a two-year basis remained roughly the same. The division, which includes Brazil and Japan, had positive sales in the same business in all regions compared to the previous year.
In the top six McDonald’s six markets, the company reported approximately $ 8 billion in system-wide digital sales in the first half of the year. In an effort to keep the digital sales made during the pandemic, the fast food chain launched a U.S. loyalty program in early July. To date, more than 12 million consumers have joined the program.
The company also raised its forecast for the year. It now expects system-wide revenue growth in the middle to upper teens, versus its previous forecast of mid-teens.
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