McDonald’s posted better-than-expected sales in its second quarter, driven by popular hot products such as a “Minecraft”-themed meal and new chicken strips. Revenue rose 5% to $6.8 billion, exceeding analyst forecasts of $6.7 billion.
Same-store sales, or sales at existing locations, jumped nearly 4%, a significant improvement from the expected 1% decline. The company’s shares rose 3% in premarket trading on Wednesday.
The turnaround is a stark contrast to the first quarter, when U.S. and global same-store sales slumped due to consumer cutbacks on fast food. However, McDonald’s new menu items, including the collectible Minecraft figures, have been successful in attracting customers back to stores.
Other rivals, such as Yum Brands, parent company of KFC, Taco Bell, and Pizza Hut, reported lower-than-expected revenue and same-store sales declines. Chipotle also lowered its full-year same-store sales guidance after a disappointing second quarter with 4% same-store sales drop.
Despite the challenges faced by the competition, McDonald’s net income rose 11% to $2.25 billion, beating analyst forecasts. Adjusted for one-time items, the company earned $3.14 per share, in line with Wall Street expectations.
Source: https://apnews.com/article/mcdonalds-second-quarter-chicken-minecraft-c158477380af29c9481b2ab75ac0e90f