McDonald’s National Sales Growth Comes Up Short

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.

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