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
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to