Fast food chain McDonald’s Corporation (NYSE: MCD) reported flat revenues for the second quarter. Earnings increased, helped by strong comparable-store sales, and matched the estimates. The company’s stock rose sharply Friday morning following the announcement.
Global comparable-store sales rose 6.5% during the quarter, continuing the recent trend. The growth reflects solid sales across all segments. In the US, comparable sales increased 5.7%, helped mainly by the local deal offerings.
At $5.34 billion, consolidated revenues were broadly in line with the year-ago quarter but came in slightly above the estimates. The results reflected strong comparable sales, partly offset by the impact of the strategic re-franchising initiative. Foreign currency translation had a negative impact of $0.07 per share on earnings.
Adjusted earnings were $2.05 per share in the second quarter, in line with the consensus estimate. Net income rose to $1.52 billion or $1.97 per share from $1.50 billion or $1.90 per share in the second quarter of 2018.
“By putting our customers at the centre of all our efforts to run great restaurants, enhance the customer experience and provide delicious menu offerings, we will continue to successfully execute our Velocity Growth Plan,” said McDonald’s chief executive officer Steve Easterbrook.
During the quarter, the company returned around $2 billion to shareholders through share repurchases and dividends.
Recently, McDonald’s entered into a partnership with DoorDash for food delivery, expanding the McDelivery service in the US. The company has embarked on a modernization drive in the US to improve customer experience and traffic. The goal is to revamp the majority of the stores by the end of next year.
Last week, the stock rose to an all-time high, continuing the steady growth that began several months ago. It closed the last trading session slightly higher and gained further during Friday’s premarket session.