McDonald’s is set to release its second-quarter earnings report before the market opens on Monday. Analysts surveyed by LSEG have projected the following:
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McDonald
- Earnings per Share (EPS): $3.07
- Revenue: $6.61 billion
The burger McDonald giant’s stock has declined by 15% year-to-date, primarily due to investor worries about consumer spending and the broader restaurant industry. McDonald’s executives have acknowledged that restaurants are competing for a shrinking customer base, prompting many to introduce value meals in an effort to capture market share. In the U.S., McDonald’s has been promoting a $5 meal deal for the past month to attract more customers, and the company announced plans to extend this promotion.
However, these discounts were introduced late in the second quarter. Analysts expect McDonald’s to report flat same-store sales in the U.S. for this period, according to StreetAccount estimates. This is a stark contrast to the 10.3% increase in domestic same-store sales from the same period last year, which was bolstered by a popular promotion featuring mascot Grimace.
Internationally, McDonald’s is likely still facing challenges in the Middle East due to ongoing boycotts. Additionally, at the beginning of the second quarter, the company acquired 225 restaurants from its Israeli franchisee.
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