McDonald’s Corp. (NYSE:MCD) reported mixed second-quarter results on Tuesday, as earnings topped Wall Street estimates but revenue came in slightly below expectations. Shares traded higher following the report.
McDonald’s Comparable Sales Miss Expectations
The fast-food giant reported adjusted earnings of $3.38 per share, beating the analyst consensus estimate of $3.32. Revenue increased 4% year over year, or 2% in constant currencies, to $7.099 billion, missing the Street estimate of $7.128 billion.
Global comparable sales rose 1.3% during the quarter. U.S. comparable sales increased 0.8%, driven by higher average spending and a favorable product mix, partly offset by lower guest traffic.
Chairman and CEO Chris Kempczinski said the company delivered positive comparable sales growth across all segments but acknowledged the performance fell short of expectations.
Management said it was "not satisfied" with second-quarter comparable-sales growth.
McValue Execution Missteps Weighed On Customer Traffic
McDonald’s said inconsistent execution of its under $3 Everyday Affordable Price (EDAP) menu, launched under the McValue platform in late April, did not generate the expected increase in customer visits.
The company cited inconsistent restaurant-level execution and lower-than-expected consumer awareness of the EDAP menu. It also reduced digital offers and removed its buy-one, add-one-for-$1 promotion to fund the McValue initiative.
McDonald’s said those factors negatively affected visits from some loyal customers and estimated they accounted for about two-thirds of the traffic shortfall relative to its expectations for the quarter.
Digital Offers, Marketing Push Planned
During the earnings call, management said restaurant teams were stretched by multiple operational initiatives during the quarter, leading to less efficient execution.
Beginning next week, McDonald’s plans to launch digital flash offers aimed at re-engaging high-frequency customers. The company also plans to shift marketing spending during the second half of 2026 to support value offerings, including Extra Value Meals.
Management also said McDonald’s brand relevance among U.S. Gen Z consumers has increased and that the company now holds a significant advantage over its primary competitor in that demographic.
McDonald’s also announced that longtime executive Skye Anderson will become President of McDonald’s USA, effective immediately. The company said Anderson, most recently chief operating officer of McDonald’s USA, will lead efforts to improve execution in its largest market as Joe Erlinger departs.
McDonald’s Price Action
MCD Price Action: McDonald’s shares were up 1.66% at $269.63 at the time of publication on Tuesday, according to Benzinga Pro data.
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