McDonald\’s Anticipates U.S. Market Upswing Yet Low‑Income Diners Still Strain

McDonald’s Q2 Earnings: Profits Surge, US Sales Rebound

US Sales Outlook

• US comparable sales rose 2.5% in Q2 after a 3.6% decline in Q1.
• Executive Christopher Kempczinski described the U.S. consumer base as “bifurcated,” noting persistent weakness among low‑income shoppers.
• He added that “real incomes are down” for this group despite higher wages, citing anxiety around tariffs and employment uncertainty.
• Consumers are either skipping breakfast meals or “trading down” either within McDonald’s menu or to eating at home.

Profit and Revenue Growth

• McDonald’s profits increased 11% to $2.3 billion.
• Overall revenues grew 5% to $6.7 billion.
• Global comparable sales recorded a 3.8% rise.

Global Market Highlights

• Japan showed strong performance.
• In Germany, a promotion for the Chicken Big Mac boosted demand.
• France launched the Big Arch burger promotion, also driving sales.

US Promotions and Franchisee Dynamics

• McDonald’s introduced $5 Meal Deal and Snack Wrap for $2.99.
• Executives noted they are still working to roll these offers “throughout the network.”
• Franchisees have sometimes resisted such promotions because of profit concerns.
• “Too often consumers drive up to a McDonald’s and you’re seeing combo meals that could be priced over $10,” Kempczinski said, arguing this shapes negative value perceptions.
• He emphasized the company is holding “active and productive” conversations with franchisees to address the issue.

Market Reaction

Shares of McDonald’s jumped 3.0% near midday.