Earnings Fail to Impress
Read management/analysts’ comments on McDonald’s Q2 results
It seems the California-based company was better prepared to face the pandemic than many others, thanks to its ability to adapt during times of uncertainty and effective supply chain planning. The management’s prompt efforts to enhance digital capabilities, the introduction of a new loyalty program, and the revamped menu also came into play. Currently, steps are being taken to streamline the workforce and increase wages to better serve customers.
The BTS Meal
Adjusted earnings more than doubled year-over-year to $2.37 per share in the second quarter, driven by a 57% jump in revenues to $5.9 billion. Both company-owned stores and franchised stores registered strong growth. The numbers also came in above the market’s prediction. The positive outcome can be attributed mainly to the high demand for the new chicken sandwich and the BTS meal launched a few months ago.
A lot of promotional activity went into the successful launch of the BTS meal of McNuggets, supported by a collaboration with the Korean pop band after which it is named. Interestingly, the new menu continues to attract customers to the stores, after driving up US same-store sales by 26% in the most recent quarter.
Opening Up
After being confined to their homes for more than a year, people have finally started venturing out and setting a new pattern for eating out. However, the COVID crisis is far from over and governments in many regions have started reinstating restrictions that were eased earlier, concerned about the spread of the delta variant. In short, the continuing uncertainty could be an impediment to McDonald’s’ efforts to restore normalcy.
Key highlights from Domino’s Pizza’s Q2 2021 earnings results
McDonald’s stock is among the top gainers this year, growing about 18% in the past six months alone, all along outperforming the market. The shares, which bounced back pretty quickly after the post-earnings selloff this week, traded higher throughout Thursday’s regular session.