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McDonald’s reports tepid Q2 results as U.S. execution concerns surface
The company said domestic weakness reflected a crowded promotions calendar and slower kitchen throughput, and it appointed a new President of McDonald’s USA to address the issues.
McDonald’s Q2 results showed modest growth but weaker momentum in the U.S., with CEO Chris Kempczinski pointing to execution problems behind softer domestic performance. Global same-store sales rose 1.3% and US comps increased only 0.8%, while consolidated revenue rose 4% to $7.1 billion, a slight miss versus expectations, according to Yahoo Finance.
The outlet said McDonald’s systemwide sales totaled $37 billion globally, supported by expansion in digital loyalty programs. Management also attributed U.S. weakness to an overly crowded promotional calendar tied to major sports partnerships and new product rollouts, which management said clogged operations and slowed kitchen service times.
Yahoo Finance further reported that an inconsistent rollout of the Every Day Affordable Price menu under $3 coincided with a reduction in digital flash deals. To tackle the bottlenecks, the company appointed Skye Anderson as President of McDonald’s USA, emphasizing changes that include improving food quality, overhauling the beverage platform, improving throughput, and shifting marketing and digital reward frameworks.
The story also noted continued macroeconomic pressure on the quick-service industry, including wage inflation and reduced dining frequency among low-income households, which could compress store-level margins, per Yahoo Finance.