McDonald's Reports Q2 Earnings Miss with EPS $2.97, Revenue $6.49B, First Sales Decline Since 2020

Jul 29, 2024, 11:41 AM

McDonald's reported disappointing second-quarter results, missing both earnings and revenue estimates. The company posted an adjusted earnings per share (EPS) of $2.97, falling short of the expected $3.07, and down 6% year-over-year. Revenue for the quarter was $6.49 billion, below the forecasted $6.65 billion, and flat year-over-year. This marks the first decline in global comparable sales since the fourth quarter of 2020, with a 1% decrease against an estimated 0.84% increase. U.S. comparable sales also dropped by 0.7%, missing the expected 1% growth. The company attributed the decline to a pullback in consumer spending and negative guest counts, despite efforts to attract customers with value meals. McDonald's plans to add over 1,600 net new restaurants in 2024 and expects its operating margin percentage to be in the mid-to-high 40% range for the year. Additionally, the company's net income decreased by 12% year-over-year, and it reported systemwide sales to loyalty members reaching $7 billion for the quarter. McDonald's market cap stands at $181.61 billion, and systemwide sales increased by 1% in constant currencies.