Franchise News
McDonald’s National Sales Growth Comes Up Short
Revenue fell 12 percent from a year ago due to the sale of company-owned stores to franchisees
McDonald’s second-quarter earnings missed their mark in large part due to the selling of company-owned units to franchisees as part of an operational restructuring, the company said. A Wall Street Journal article detailed how selling restaurants to franchisees dropped McDonald’s revenue 12 percent from $6.05 billion a year ago to $5.35 billion in the quarter. The number is actually higher than what was projected ($3.52 billion), which McDonald’s attributed to the restructuring of its value meal and the move to fresh beef producing higher customer checks on average, plus the jump in sales that resulted from its delivery partnership for Uber Eats.
Same-store sales grew 2.6 percent in the U.S. during Q2, but also fell short as expected growth was 3 percent for stores open longer than a year. Operating income also decreased as a result of the company’s restructuring, which aims to better support franchisees by assisting with expense management and helping generate ideas for increased sales.
You can read the full story here.
McDonald’s second-quarter earnings missed their mark in large part due to the selling of company-owned units to franchisees as part of an operational restructuring, the company said. A Wall Street Journal article detailed how selling restaurants to franchisees dropped McDonald’s revenue 12 percent from $6.05 billion a year ago to $5.35 billion in the quarter. The number is actually higher than what was projected ($3.52 billion), which McDonald’s attributed to the restructuring of its value meal and the move to fresh beef producing higher customer checks on average, plus the jump in sales that resulted from its delivery partnership for Uber Eats.
Same-store sales grew 2.6 percent in the U.S. during Q2, but also fell short as expected growth was 3 percent for stores open longer than a year. Operating income also decreased as a result of the company’s restructuring, which aims to better support franchisees by assisting with expense management and helping generate ideas for increased sales.
You can read the full story here.
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About the Author
Madeline Lena
FollowMaddie has spent her career in the media industry, serving in various editorial roles before migrating into a hybrid content strategy and PR role with No Limit Agency. Her passion for storytelling and love of writing help her create meaningful content on behalf of her clients and fulfill No Limit Agency’s mission to tell people-driven stories.
Maddie is a graduate of Saint Louis University, where she studied Communications with a focus in journalism and media studies as well as Sports Business. In her spare time, Maddie can be found exploring Chicago’s food scene, watching an NBA game or lamenting over her middling fantasy baseball team.
