Wall Street opened flat on Monday following a gloomy earnings outlook from McDonald’s in the wake of a record closing high hit by the S&P 500 index in the prior session.
Source: Yahoo! Finance
McDonald’s Q2 financial results are out.
Q2 earnings came in at $1.38 per share, missing analysts’ estimates for $1.40.
Revenue came in at $7.08 billion, which was a hair lower than the $7.09 billion expected.
The stock is down by around 2% in pre-market trading.
Global comparable store sales climbed 1.0%, which was right in line with expectations.
However, U.S. comparable store sales climbed by just 1.0%. Analysts were looking for 1.5% growth.
“During the quarter, new product introductions across the four key growth categories of chicken, beef, breakfast and beverages, ongoing support for the Dollar Menu and greater accessibility to McDonald’s classic core favorites supported the segment’s sales performance,” said management about U.S. sales. “While the U.S. grew comparable sales and continued to outpace the competition, sales results were impacted by the comparison against prior year promotional activity.”
“While the informal eating out market remains challenging and economic uncertainty is pressuring consumer spending, we’re continuing to differentiate the McDonald’s experience by uniting consumer insights, innovation and execution,” said CEO Don Thompson.
“While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat,” Thompson continued. “Based on recent sales trends, our results for the remainder of the year are expected to remain challenged.”
Source: Business Insider
You know things must be getting bad when a company like McDonald’s (MCD) is beginning to struggle.
Disclosure: I own shares of MCD, indirectly, through the Vanguard Total Stock Market (VTI) ETF.
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