McDonald's reports a 0.2% sales drop at U.S. restaurants as customer traffic falls
McDonald's, the fast-food restaurant chain, just reported a 0.2% U.S. sales drop as customer traffic fell.
The short version
- Wall Street analysts expected a worse decline of 0.5%.
- Net income rose to $2.49 billion for the quarter.
- Shares jumped more than 2% in premarket trading.
McDonald's, the fast-food restaurant chain, just reported mixed quarterly results as customer traffic to its U.S. restaurants fell. The company reported a 0.2% decrease in sales at U.S. restaurants open at least 13 months, according to CNBC. Even so, that domestic segment performed better than the 0.5% decline that Wall Street anticipated.
Net income reached $2.49 billion, or $3.51 per share, up from $2.28 billion a year earlier. Chris Kempczinski, the head of McDonald's, said the company was encouraged by improvement as the quarter progressed following its intervention on value. In August, executives admitted the U.S. business was falling short on execution and value offerings.
Like many restaurants, the chain has leaned into discounts to attract budget-conscious diners. International segments helped lift overall same-store sales by 1.5%. The international developmental licensed markets business, including Japan and China, reported same-store sales growth of 4.2%.
Meanwhile, shares of the company rose more than 2% in premarket trading. For a business watching customer spending, the numbers show shoppers are still hunting for the right price.
