McDonald’s (MCD) shares jumped nearly 4% in pre-market trading Wednesday after the company reported a better-than-expected earnings rebound in the second quarter, driven by renewed U.S. sales growth and international strength.
U.S. sales turn positive after early-year slump
After a rough start to 2025—including fallout from an E. coli outbreak and inflation-driven consumer caution—McDonald’s delivered a 2.5% increase in U.S. same-store sales, beating Wall Street’s expected 2.3% gain.
That marks a significant turnaround from the 3.6% drop in Q1, reported in May, and a major improvement from the 0.7% decline in the same quarter last year.
CEO Chris Kempczinski credited “compelling value, standout marketing, and menu innovation” for the rebound.
Global sales and revenue beat estimates
- Global comparable sales rose 3.8%, outpacing the expected 2.5%
- Revenue hit $6.84 billion, ahead of the $6.70 billion estimate and up from $6.49 billion last year
- Adjusted EPS came in at $3.19, beating the $3.14 forecast and up from $2.97 last year
Regional performance highlights:
- International developmental markets led with a 5.6% increase, driven by Japan
- International operated markets grew 4%, more than double analyst projections of 1.8%
- All locations (new + existing) combined to deliver 6% sales growth
What’s driving McDonald’s momentum?
The company leaned into value-focused marketing, including:
- New $2.99 Chicken Snack Wraps, launched July 10
- Promotions like the Minecraft Movie tie-in
- Continued emphasis on mobile ordering, McDelivery, and loyalty programs
These efforts appear to be resonating with consumers amid economic uncertainty.
“We believe the July commentary with the recent launch of expanded value and Chicken Snack Wrap should have same-store sales growth back in mid-single digit range,” wrote Jefferies analyst Andy Barish.
Forecast remains unchanged—for now
McDonald’s did not update its 2025 financial guidance but had previously projected:
- 1.9% same-store sales growth globally
- 1.2% growth in U.S. same-store sales
Investors will likely watch the current quarter closely, especially given the popularity of value offerings and the company’s expanding digital footprint.
MCD stock reaction
Following the report:
- McDonald’s stock rose 3.93% to $310.52 in pre-market trading
- The jump helped reverse recent weakness, reflecting optimism over sales recovery
Key Takeaways:
- McDonald’s Q2 earnings topped expectations on U.S. and global sales growth
- Value meals, Snack Wrap return, and global momentum helped fuel the rebound
- Stock rose nearly 4% on earnings news
- Company reaffirmed FY25 outlook but left room for upward revisions next quarter
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