McDonald's sales sizzle on new menu items
OAK BROOK, Ill. - McDonald's (MCD) says a promotion for $1 sodas and a new line of premium burgers helped boost sales in its flagship U.S. market.
The Oak Brook, Illinois, company said Tuesday domestic sales rose 3.9 percent at established locations during the second quarter. Globally, it says sales rose 6.6 percent.
The results come as McDonald's CEO Steve Easterbrook has been working on modernizing the chain's menu and stores to get customers visiting more often. For the third year in a row, McDonald's is set to shrink the number of its U.S. stores, with the frequency of customer visits declining for the past four years.
Easterbrook has said McDonald's hadn't adapted as expectations around convenience has changed. The company is trying to change that by rolling out in-store ordering kiosks, expanding delivery in partnership with UberEats and launching a mobile order-and-pay option later this year in the U.S.
While those efforts may help boost sales over the long term, the company is relying on more tried-and-true promotions like the beverage deals and new "Signature Crafted" burgers to attract customers in the short term.
For the period ended June 30, the company earned $1.4 billion, or $1.70 per share. Earnings, adjusted for nonrecurring costs, were $1.73 per share, beating analysts forecast for $1.62, according to a poll by Zacks Investment Research.
Shares of McDonald's rose nearly 2.5 percent in premarket trading, rising $3.73 to $155.58.
Total revenue at the world's biggest hamburger chain was $6.05 billion, also beating expectations.
Shares of McDonald's have climbed 25 percent since the beginning of the year, while the S&P 500 stock index has risen 10 percent. The stock has risen 18 percent in the last 12 months.
