McDonald's sales picked up in the latest quarter, suggesting that pop culture-focused collaborations and budget meals are helping to offset diners' economic anxiety.
Global sales at restaurants open at least 13 months rose 3.8% in the second quarter, the company said Wednesday. That's higher than the average estimate of analysts polled by Bloomberg. International markets led the company's growth, while the US was slightly ahead of expectations as Americans spent more per trip.
The results ended four quarters of declining or tepid growth as the burger chain dealt with an E. coli outbreak, backlash against American brands in the Middle East and consumer unease about the economy in response to President Trump's trade disputes.
The chain's second-quarter efforts to bring in customers included a meal timed to the launch of the Minecraft movie and a Squishmallows themed limited-time offer. In the US, the company launched chicken strips while trying to win over budget-sensitive diners with offerings such as its meal bundle starting at $5.
The turnaround in the US is stark, with sales rising 2.5% in the second quarter after slumping in the 3 months ended late March. It also contrasts with a mixed picture across the restaurant industry.
The overall second-quarter results show that McDonald's strategy is working and could lead to "sustained" same-store sales outperformance compared to the rest of the industry, Citi analyst Jon Tower said.
Rivals such as Chipotle Mexican Grill and Pizza Hut are grappling with pullbacks as they struggle to convey to customers that their meals are a good deal.
Global sales at restaurants open at least 13 months rose 3.8% in the second quarter, the company said Wednesday. That's higher than the average estimate of analysts polled by Bloomberg. International markets led the company's growth, while the US was slightly ahead of expectations as Americans spent more per trip.
The results ended four quarters of declining or tepid growth as the burger chain dealt with an E. coli outbreak, backlash against American brands in the Middle East and consumer unease about the economy in response to President Trump's trade disputes.
The chain's second-quarter efforts to bring in customers included a meal timed to the launch of the Minecraft movie and a Squishmallows themed limited-time offer. In the US, the company launched chicken strips while trying to win over budget-sensitive diners with offerings such as its meal bundle starting at $5.
The turnaround in the US is stark, with sales rising 2.5% in the second quarter after slumping in the 3 months ended late March. It also contrasts with a mixed picture across the restaurant industry.
The overall second-quarter results show that McDonald's strategy is working and could lead to "sustained" same-store sales outperformance compared to the rest of the industry, Citi analyst Jon Tower said.
Rivals such as Chipotle Mexican Grill and Pizza Hut are grappling with pullbacks as they struggle to convey to customers that their meals are a good deal.
