McDonald’s Corporation (MCD) beat analyst expectations for its second quarter 2018 results despite posting a 12% decrease in revenues. Consolidated revenues fell to $5.35 billion during the quarter, hurt by impacts from strategic re-franchising initiatives. Global comparable sales rose 4%, reflecting positive comp sales in all segments. Systemwide sales grew 5% in constant currencies.
Net income for the quarter rose 7% to $1.49 billion from the prior-year period. Diluted EPS improved 12% to $1.90, reflecting $0.09 per share of strategic restructuring charges. Adjusted diluted EPS grew 15% to $1.99 during the quarter. Earnings for the quarter benefited from an increase in sales-driven franchised margin dollars and a lower effective tax rate.
Sales at Company-owned restaurants fell 27% in the quarter while revenues from franchised restaurants increased 11%. The fast-food chain faced food poisoning issues during the quarter which led to a recall of salads at thousands of its restaurants across the nation.
In the US, comparable sales grew 2.6% driven by growth in average check resulting from product mix shifts and menu price increases. Comp sales in the International Lead segment rose 4.9%, reflecting positive results across all markets, mainly driven by the UK and France.
In the High Growth segment, comparable sales improved by 2.4%, led by strong performance in Italy and positive results across most of the segment. Comp sales in the Foundational markets rose 6.8%, reflecting positive sales performance across all geographic regions.
The company returned $2.5 billion to shareholders through share repurchases and dividends during the quarter.
Related: Lovin’ It: McDonald’s stock soars on upbeat first quarter
Related: McDonald’s Corp. Q2 2018 Earnings Call Transcript
Most Popular
Costco (COST) reports strong growth in Q1 FY26 earnings; revenue up 8%
Costco Wholesale Corporation (NASDAQ: COST) has reported an increase in net income for the first quarter of fiscal 2026. Revenues grew 8.3% year-over-year. The Issaquah, Washington-headquartered warehouse giant’s total revenues
AVGO Earnings: Broadcom reports higher Q4 FY25 revenue, profit; results beat
Semiconductor company Broadcom, Inc. (NASDAQ: AVGO) on Thursday reported an increase in revenue and adjusted earnings for the fourth quarter of fiscal 2025. The numbers also surpassed analysts' expectations. Adjusted
Lamb Weston (LW) is set to report Q2 2026 earnings next week, here’s what to look for
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) rose over 1% on Thursday. The stock has gained 4% over the past three months. The French fry giant is slated to
