McDonald’s Corporation (NYSE: MCD) showcased a robust performance in its second quarter, signaling a rebound from prior challenges. On August 5, the stock closed at 8.77, reflecting a 1.79% decline, yet it experienced a notable surge of 3.19% in pre-market trading, reaching 8.30 following the release of its impressive Q2 earnings.
Global comparable sales saw an increase of 3.8%, surpassing Bloomberg’s forecast of 2.5% and marking a significant turnaround from the first quarter of 2025. In the U.S., same-store sales rose by 2.5%, outpacing the analyst consensus of 2.3% and demonstrating a remarkable recovery from a 3.6% decline in Q1.
Strong Menu Strategy and Marketing Fuel Growth
Revenue for the quarter climbed to .84 billion, exceeding the anticipated .70 billion and improving from .49 billion year-over-year. Net income reached .25 billion, with adjusted earnings per share (EPS) at .19, reflecting a rise from .97 YoY and surpassing expectations by [cyberseo_openai model=”gpt-4o-mini” prompt=”Rewrite a news story for a business publication, in a calm style with creativity and flair based on text below, making sure it reads like human-written text in a natural way. The article shall NOT include a title, introduction and conclusion. The article shall NOT start from a title. Response language English. Generate HTML-formatted content using
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TLDR
- MCD stock closed at $298.77 on Aug. 5, up 3.19% in pre-market after Q2 results
- Global comparable sales rose 3.8%, led by Japan and strong U.S. demand
- Revenue reached $6.84B vs. $6.70B expected, up from $6.49B YoY
- EPS came in at $3.19, beating estimates by $0.05
- Menu hits like McCrispy Chicken Strips and a Minecraft-themed meal boosted traffic
McDonald’s Corporation (NYSE: MCD) reported a strong second quarter on Wednesday, 6th August, helping its stock recover from recent weakness. MCD closed at $298.77 on August 5, down 1.79%, but surged 3.19% to $308.30 in pre-market trading after releasing better-than-expected Q2 earnings.
McDonald’s Corporation (MCD)
Global comparable sales increased by 3.8%, beating Bloomberg’s forecast of 2.5%, and reversing a slump from Q1 2025. U.S. same-store sales rose 2.5%, ahead of the 2.3% analyst consensus and a major improvement from the 3.6% drop posted in Q1.Strong Menu Strategy and Marketing Fuel Growth
Revenue climbed to $6.84 billion, exceeding the $6.70 billion consensus and improving from $6.49 billion a year earlier. Net income reached $2.25 billion, with adjusted EPS at $3.19, up from $2.97 YoY and $0.05 above expectations.
CEO Chris Kempczinski credited “compelling value, standout marketing, and menu innovation” for the recovery. The introduction of McCrispy Chicken Strips in May and the Minecraft Movie Happy Meal in April drove significant traffic gains. The collectible Minecraft figures sold out in under two weeks across 100 countries.International Momentum
The International Developmental Licensed Markets segment posted same-store sales growth of 5.6%, led by Japan, surpassing the 3.6% estimate. International Operated Markets also beat expectations, rising 4% vs. the 1.8% projected. Sales in the UK, Canada, and France bounced back after a soft Q1.
Restaurants open less than a year saw a 6% increase in sales, while systemwide sales grew 8% (6% in constant currency). McDonald’s said digital loyalty sales hit $9 billion for the quarter.
Profitability & Long-Term Outlook
Operating income increased 11%, or 7% when excluding one-time restructuring charges of $43 million. Diluted EPS was $3.14, rising 12%, but excluding charges, came in at $3.19—a 7% YoY improvement.
Though McDonald’s didn’t update its full-year guidance, Wall Street expects U.S. same-store sales to grow 1.20% and global same-store sales to increase by 1.9%. Analysts like Jefferies’ Andy Barish believe the July Snack Wrap relaunch and $2.99 chicken value deals could push comps back into mid-single-digit growth.Performance Overview: MCD vs. S&P 500
As of August 5, 2025, McDonald’s stock lags the broader market in several timeframes:
- YTD Return: MCD +4.25% | S&P 500 +7.10%
- 1-Year Return: MCD +13.91% | S&P 500 +21.46%
- 3-Year Return: MCD +23.46% | S&P 500 +51.96%
- 5-Year Return: MCD +68.09% | S&P 500 +89.29%
Despite a weaker performance relative to the S&P 500, McDonald’s consistent dividend and defensive positioning continue to appeal to long-term investors.
Looking Ahead
With Snack Wraps returning in July and increased emphasis on affordable bundles like the $5 Meal Deal, McDonald’s is actively positioning for a stronger rest of 2025. The company remains focused on digital growth, loyalty engagement, and international expansion to keep traffic high amid economic uncertainty.
” temperature=”0.3″ top_p=”1.0″ best_of=”1″ presence_penalty=”0.1″ ].05. CEO Chris Kempczinski attributed this recovery to “compelling value, standout marketing, and menu innovation.” The launch of McCrispy Chicken Strips in May and the Minecraft Movie Happy Meal in April significantly contributed to increased customer traffic, with collectible Minecraft figures selling out in under two weeks across 100 countries.
International Momentum
The International Developmental Licensed Markets segment reported same-store sales growth of 5.6%, driven primarily by Japan, which exceeded the 3.6% estimate. Similarly, International Operated Markets also outperformed expectations, rising by 4% compared to the projected 1.8%. Sales in key markets such as the UK, Canada, and France rebounded after a lackluster first quarter.
Restaurants that have been open for less than a year experienced a 6% increase in sales, while systemwide sales grew by 8% (6% in constant currency). McDonald’s highlighted that digital loyalty sales reached an impressive billion for the quarter.
Profitability & Long-Term Outlook
Operating income rose by 11%, or 7% when excluding one-time restructuring charges of million. Diluted EPS increased by 12%, reaching .14, while excluding charges, it stood at .19, marking a 7% improvement year-over-year. Although McDonald’s did not revise its full-year guidance, Wall Street anticipates U.S. same-store sales to grow by 1.20% and global same-store sales to rise by 1.9%. Analysts, including Jefferies’ Andy Barish, suggest that the relaunch of the Snack Wrap and the introduction of .99 chicken value deals could drive comparable sales back into mid-single-digit growth.
Performance Overview: MCD vs. S&P 500
As of August 5, 2025, McDonald’s stock has underperformed compared to the broader market across various timeframes:
- YTD Return: MCD +4.25% | S&P 500 +7.10%
- 1-Year Return: MCD +13.91% | S&P 500 +21.46%
- 3-Year Return: MCD +23.46% | S&P 500 +51.96%
- 5-Year Return: MCD +68.09% | S&P 500 +89.29%
Despite this relative underperformance, McDonald’s consistent dividend and defensive positioning continue to attract long-term investors.
Looking Ahead
With the return of Snack Wraps in July and a heightened focus on affordable bundles like the Meal Deal, McDonald’s is strategically positioning itself for a stronger remainder of 2025. The company remains committed to enhancing digital growth, engaging customer loyalty, and expanding internationally to sustain high traffic levels amidst economic uncertainties.
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