Chicago: McDonald’s is scheduled to report its second-quarter earnings before the market opens on Monday. Wall Street analysts surveyed by LSEG have outlined their expectations for the burger giant’s performance.
The company's stock has experienced a 15 percent decline year to date, driven by investor concerns regarding consumer spending and the broader restaurant industry’s health. McDonald’s executives have cautioned that restaurants are competing for a dwindling number of customers, prompting many to introduce value meals to capture market share. In the U.S.
As per reports, McDonald’s has been promoting a 5 dollars meal deal for the past month to attract more customers, and on Monday, the company informed its U.S. system that it plans to extend this promotion.
However, these discounts were implemented only at the end of the second quarter. Wall Street anticipates that the company will report flat U.S. same-store sales for this period, according to StreetAccount estimates. In contrast, a year ago, McDonald’s saw a 10.3% increase in domestic same-store sales, bolstered by a viral promotion featuring the mascot Grimace.
Internationally, McDonald’s is likely to continue facing declining sales in the Middle East due to boycotts. At the beginning of the second quarter, the company acquired the 225 restaurants operated by its Israeli franchisee.
The upcoming earnings report will provide insights into how McDonald’s is navigating these challenges and adapting its strategies to maintain its market position.
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