McDonald's beats by $0.11, beats on revs (151.85)
- Reports Q2 (Jun) earnings of $1.73 per share, $0.11 better than the Capital IQ Consensus of $1.62; revenues fell 3.4% year/year to $6.05 bln vs the $5.96 bln Capital IQ Consensus.
- Global comparable sales increased 6.6% [vs. ests near +4%], reflecting positive guest counts in all segments
- In the U.S., second quarter comparable sales increased 3.9%, reflecting the national cold beverage value promotion and the launch of the Signature Crafted premium sandwich platform. The U.S. continues to build momentum as it executes strategies to enhance convenience, strengthen value and innovate around the menu to bring more customers to McDonald's more often. Operating income for the quarter increased 5%, reflecting higher sales-driven franchised margin dollars, G&A savings and higher gains on sales of restaurants.
- Comparable sales for the International Lead segment increased 6.3% for the quarter, led by continued momentum in the U.K., strong performance in Canada and Germany and positive results across all other markets. The segment's operating income increased 8% (13% in constant currencies), fueled primarily by sales-driven improvements in franchised margin dollars.
- In the High Growth segment, second quarter comparable sales increased 7.0%, led by strong performance in China and positive results across the entire segment. The segment's operating income rose 28% (28% in constant currencies), with about half of the increase resulting from lower depreciation expense due to the accounting treatment related to the pending sale of the China and Hong Kong businesses.
- In the Foundational Markets & Corporate segment, second quarter comparable sales rose 13.0% and operating income increased significantly, led by very strong performance in Japan as well as strong results across the segment's other geographic regions. The segment also benefited from comparison to the prior year's strategic charges.