Overview
- McDonald’s reported Thursday that adjusted earnings rose to $2.83 per share on revenue of $6.52 billion as global comparable sales grew 3.8%, while U.S. growth of 3.9% trailed Wall Street’s 4.2% target.
- Following Thursday’s report, Shake Shack shares fell about 28% after the chain posted an operating loss of $2.6 million with break-even adjusted earnings as higher beef and overhead costs squeezed margins.
- Shake Shack named Michelle Hook as chief financial officer effective May 11 and kept adding new locations, a push that lifted sales but increased cash needs and near-term cost pressure.
- Restaurant Brands International, which reported Wednesday, topped estimates with adjusted earnings of $0.86 and $2.26 billion in revenue as Burger King U.S. same-store sales rose 5.8% while Popeyes sales fell 6.5%.
- Executives and analysts said pricier gasoline is curbing lower-income spending, leading diners to choose single items or lower-cost deals, and chains are leaning on value menus and limited-time items to keep traffic coming in.