McDonald’s reported a higher second-quarter profit and appointed a new head of its US business as domestic sales remained under pressure from increasingly cautious consumers, the AP reported.
The Chicago-based fast-food chain earned $2.36 billion, or $3.32 per share, in the three months ended June 30, up from $2.25 billion, or $3.14 per share, a year earlier.
Revenue rose to $7.1 billion from $6.84 billion a year earlier but narrowly missed Wall Street’s estimate of $7.13 billion.
The company announced on Tuesday that Skye Anderson will become president of McDonald’s USA.
US same-store sales edged up 0.8%, slowing sharply from 2.5% a year earlier, when a meal promotion tied to “A Minecraft Movie” boosted demand. Global same-store sales increased 1.3%.
McDonald’s warned in May that elevated gasoline prices and consumer concerns over the US conflict with Iran could weigh on sales. The national average price of regular gasoline recently peaked at $4.56 per gallon on May 21, according to AAA.
McDonald’s has revamped its menu and introduced value meals and other promotions to attract cost-conscious customers. In April, it launched a simplified McValue menu featuring 10 items priced at $3 or less.
US same-store sales growth lagged that of its international markets, a gap CEO Chris Kempczinski said the company plans to address.
“While our playbook is working around the world, we see an opportunity to raise the bar in the U.S. and accelerate performance in our largest market,” Kempczinski said in a statement.
