McDonald’s posted mixed second-quarter results on Tuesday, with U.S. same-store sales rising 0.8% — a slowdown from the 2.5% growth posted in the same period a year earlier — as domestic guest counts declined.
The company also named Skye Anderson as president of McDonald’s USA, effective Tuesday. Anderson, who spent 26 years at McDonald’s and most recently held the chief operating officer role for McDonald’s USA, succeeds Joe Erlinger, whose tenure heading the division stretched past six years, according to CNBC.
Global comparable sales rose 1.3% for the quarter. The international operated markets segment, with Germany, Australia, and the U.K. out front, recorded comparable-sales growth of 1.5%, and the international developmental licensed markets segment, paced by Japan, advanced 1.9%. The U.S. result was driven by higher average check sizes, including a favorable product mix, partly offset by negative comparable guest counts, the company said.
The company brought in $7.1 billion in total revenue, a 4% increase year over year. Net income totaled $2.36 billion, or $3.32 per share, compared with $2.25 billion, or $3.14 per share, in the year-ago period. Excluding restructuring charges, earnings per share were $3.38.
“While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market,” Chairman and CEO Chris Kempczinski said in a statement. “Skye Anderson’s appointment today as President of McDonald’s USA will bring focus and urgency to these efforts given her deep system knowledge, operational discipline, and proven ability to drive change.”
McDonald’s stock rose 2% in premarket trading.
One headwind for the quarter was that U.S. results were measured against a prior-year period buoyed by a worldwide limited-time promotion tied to the “Minecraft” movie, according to CNBC.
The quarter’s U.S. results come after McDonald’s posted a 3.9% domestic same-store sales gain in the first quarter, powered by higher average check sizes and the launch of the Big Arch, a limited-time supersized burger. In early May, the chain launched six specialty drinks nationwide, including three refreshers and three crafted sodas, as part of a broader effort to compete in the beverage category.
Global systemwide sales increased 5% to $37 billion for the quarter. Across 70 loyalty markets, systemwide sales to loyalty members for the trailing twelve months rose more than 20% to $40 billion, with 90-day active loyalty users up 13% to nearly 220 million, the company said.