Fast food giant McDonald’s has been feeling the consequences of consumers walking back on their spending habits. Sharing its second-quarter earnings on Monday, McDonald’s revealed that its revenue, earnings, and same-store sales came below Wall Street analysts’ expectations.
The company reported revenue of $6.49 billion, which marked around a 2% increase compared to the same period in 2023 but was shy of an estimated $6.63 billion. Its adjusted earnings per share came at $2.97, below the expected $3.07, while the global same-store sales dipped 1% versus an estimated 0.84% jump.
Fast food enthusiasts have been wary of the rising prices, which resulted in less foot traffic at McDonald’s locations in the United States. Meanwhile, the chain saw improvements at its locations across Latin America and Japan.
McDonald’s recently introduced a “$5 Meal Deal” promotion that had a promising effect on sales, although the impact of the campaign is expected to be more prominent in the third quarter results.
“As consumers are more discriminating with their spend, we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers like chicken and loyalty,” McDonald’s CEO Chris Kempczinski said in a statement.
Despite the earnings miss, McDonald’s saw its stock jump 3.69% on Monday morning. The company’s shares still remain 12% down year to date.