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McDonald’s Names New U.S. President as U.S. Sales Growth Slows

Management says poor execution of recent value rollouts cut traffic and it will roll out a 'McDonald’s Next' plan to simplify offers and lift productivity.

Overview

  • McDonald’s reported that U.S. same-store sales grew just 0.8% in the second quarter, a meaningful slowdown that missed analyst forecasts and reflected weaker guest counts.
  • Global comparable sales rose 1.3% in the quarter while net income was $2.36 billion and adjusted EPS was $3.38, showing profits held up despite softer traffic.
  • Executives and the CEO pointed to execution problems—uneven rollout of the McValue lineup, too many new items and longer service times—as the primary reason for the U.S. miss.
  • The company named Skye Anderson president of McDonald’s USA to focus on U.S. operations and previewed a system-wide strategy called 'McDonald’s Next' that aims to simplify value offers and boost productivity.
  • Investors sent mixed signals after the results with shares down year-to-date and options pricing showing expectations for near-term volatility as the chain tries to convert promotions into steady traffic gains.