People wear protective face masks outside McDonald’s in Union Square as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on July 30, 2020 in New York City.
Noam Galai | Getty Images
McDonald’s on Wednesday reported double-digit U.S. same-store sales growth compared with 2019 levels in its latest quarter, fueled by higher demand for its chicken menu items.
Shares of the company were flat in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.37 adjusted vs. $2.11 expected
- Revenue: $5.89 billion vs. $5.6 billion expected
The fast-food giant reported fiscal second-quarter net income of $2.22 billion, or $2.95 per share, up from $483.8 million, or 65 cents per share, a year earlier.
Excluding strategic gains and U.K. income tax benefits, McDonald’s earned $2.37 per share, beating the $2.11 per share expected by analysts surveyed by Refinitiv.
Net sales rose 57% to $5.89 billion, topping expectations of $5.6 billion. Global same-store sales jumped 40.5% from a year ago and 6.9% on a two-year basis.
U.S. same-store sales climbed 25.9% in the quarter and 14.9% on a two-year basis. The company credited strong sales of its new chicken sandwich, which launched in February, and its “famous orders” promotion with K-pop group BTS, which includes an order of McNuggets and special sauces.
As the fast-food chain looks to hold onto the digital sales it gained during the pandemic, it launched a U.S. loyalty program in early July. So far, more than 12 million consumers have joined the program.
Outside the U.S., McDonald’s has seen a strong recovery in many regions. Its international operated markets segment, which includes the United Kingdom and France, reported same-store sales growth of 75.1% compared with a year ago, or 2.6% on a two-year basis. McDonald’s said that easing restrictions and fewer temporary closures helped sales for that segment.
In the international developmental licensed markets segment, same-store sales were roughly flat on a two-year basis. The division, which includes Brazil and Japan, saw positive same-store sales across all of its regions compared with a year ago.
