On July 22, 2024, a McDonald’s restaurant in Burbank, California.
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McDonald’s It is expected to release second-quarter earnings before the market closes on Monday.
Here’s what Wall Street analysts surveyed by London Stock Exchange Group (LSEG) expected from the company’s report:
- Earnings per share: Estimated $3.07
- income: Estimated US$6.61 billion
The burger chain’s shares are down 15% so far this year as investors worry about consumer spending and the health of the restaurant industry.
McDonald’s executives have warned that restaurants are competing for a smaller customer base, and many of them have been offering value meals to gain market share. In the U.S., McDonald’s launched $5 meal deals last month to attract new traffic; on Monday, the company told its U.S. systems it planned to extend the promotion.
But those discounts only began at the end of the chain’s second quarter. Wall Street expects the company’s U.S. same-store sales to be flat this quarter, according to StreetAccount estimates. A year ago, McDonald’s domestic same-store sales grew 10.3%, thanks to the viral promotion of its mascot “Grimface”.
Outside the U.S., McDonald’s sales in the Middle East may still be down due to the boycott. At the beginning of the second quarter, the company acquired 225 restaurants operated by its Israeli franchisees.
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