McDonald’s Corp (MCD) on Tuesday reported better-than-expected comparable sales in the second quarter, as the company benefited from stable online demand, new offerings and higher prices of its products.
McDonald’s international same-store sales surged 9.7% year-on-year during the second quarter, which exceeded a consensus of estimates pointing to a 6.5% growth, according to Refinitiv data.
Comparable sales in the United States grew 3.7% year-on-year during the quarter, while exceeding StreetAccount estimate of 2.8%, driven by strategic price hikes by the company and its value offerings.
McDonald’s launched online-exclusive offers that underpinned its app downloads and also introduced new offerings such as Spicy Chicken McNuggets and Chocolatey Pretzel McFlurry to lure more customers.
The company’s net sales shrank 3% year-on-year to $5.72 billion in the second quarter, while falling short of market consensus of $5.81 billion, in part hampered by the closure of McDonald’s restaurants in Ukraine and Russia.
Meanwhile, net income decreased to $1.19 billion ($1.60 per share) in the second quarter from $2.22 billion ($2.95 per share) in the same period a year ago.
In the latest quarter, McDonald’s reported a $1.2 billion charge associated with the sale of its Russian business as a result of the military conflict in Ukraine.
Excluding the above mentioned charge, a tax settlement in France, as well as other special items, the fast-food chain earned $2.55 per share, which outstripped Wall Street estimate of $2.47 per share.
McDonald’s shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since May 24th. The stock went up 2.68% ($6.71) to $257.09, after touching an intraday high at $259.22. The latter has been a price level not seen since April 21st ($259.61).
The shares of McDonald’s Corporation have retreated 4.10% so far in 2022 compared with a 17.73% loss for the benchmark index, S&P 500 (SPX).
In 2021, McDonald’s Corp’s stock went up 24.93%, thus, it underperformed the S&P 500, which registered a 26.89% gain.