McDonald’s (MCD) Q2 2024 earnings

McDonald’s on Monday reported quarterly earnings and revenue that missed analysts’ expectations as same-store sales declined across every division.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $2.97 adjusted vs. $3.07 expected
• Revenue: $6.49 billion vs. $6.61 billion expected

The fast-food giant reported second-quarter net income of $2.02 billion, or $2.80 per share, down from $2.31 billion, or $3.15 per share, a year earlier. Excluding charges related to the future sale of its South Korean business and other items, McDonald’s earned $2.97 a share.

Its quarterly revenue of $6.49 billion was flat compared with the year-ago period.

McDonald’s same-store sales shrank 1%, missing StreetAccount estimates for growth of 0.4%. It’s the first time companywide same-store sales have fallen since the fourth quarter of 2020.

In the U.S., McDonald’s same-store sales decreased 0.7% for the quarter. A year ago, the chain reported U.S. same-store sales growth of 10.3%, thanks to its popular Grimace Birthday Meal.

But in the 12 months since, more consumers have cut back their restaurant spending, particularly at fast-food chains, which they no longer see as a good deal. McDonald’s said foot traffic to its U.S. restaurants fell during the quarter.

Executives previously warned that the competition for customers had become more fierce as the consumer environment weakened. McDonald’s is leaning into discounts to bring back diners. The chain launched a $5 meal deal in late June, five days before the end of the quarter.

A week ago, the company told its U.S. system that it plans to extend the value meal past the planned four-week runtime and said that it’s bringing back customers.

McDonald’s is trying to lure in diners outside of the U.S., too. Its international operated markets division, which includes large segments like France and Germany, saw its same-store sales slide 1.1% in the quarter.

The company’s international developmental licensed markets unit, which includes China and Japan, reported same-store sales declines of 1.3%. McDonald’s is still dealing with the fallout from boycotts of the brand in the Middle East, and sales in China continue to struggle.

— CNBC’s Robert Hum contributed to this report