\A sign is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | Getty Images
McDonald’s reported its second-quarter earnings before the bell on Tuesday.
Here are the numbers:
- Adjusted earnings per share: $2.55. Wall Street analysts surveyed by Refinitiv expected $2.47, which may not be comparable.
- Revenue: $5.72 billion, vs. $5.81 billion expected
Last quarter, McDonald’s was one of the few fast-food chains to warn that it was seeing some low-income consumers trade down to cheaper meals. Investors will be watching to see if the trend worsens, particularly in the company’s home market. Wall Street is expecting U.S. same-store sales growth of 2.8%, according to StreetAccount estimates.
The company is also facing pushback at home from many of its U.S. franchisees over proposed changes to ownership terms and its grading system for operators. An overwhelming majority of franchisees surveyed by the National Owners Association, an independent advocacy group for McDonald’s operators, backed a no-confidence vote in McDonald’s CEO Chris Kempczinski and Joe Erlinger, the company’s U.S. President .
Outside the U.S., analysts are predicting strong sales growth as many international markets rebound from the pandemic. But the war in Ukraine has led to concerns that Europe could face a slowdown as gas and food prices spike. McDonald’s said last quarter that European consumer behavior hadn’t changed.
Still, the company has already faced financial fallout related to the conflict after temporarily shuttering its Ukrainian restaurants and selling off its Russian business to a Siberian franchisee. In May, the company said it expects to record a noncash charge of $1.2 billion to $1.4 billion related to its net investment in Russia and foreign currency losses.
Shares of McDonald’s have fallen more than 6% this year, dragging its market value down to $185.2 billion.
