On Tuesday, McDonald’s shares opened in record territory. We can thank McDonald’s (NYSE:$MCD) stronger-than-expected Q2 performance, which got a push from upscale burgers, chicken sandwiches, and discounted beverages.
McDonald’s Shares: Brief Overview
– Earnings Per Share: $1.70 vs. $1.62 expected, according to Thomson Reuters
– Revenue: $6.05 billion vs. $5.96 billion, according to Thomson Reuters
– United States same-store sales: 3.9% vs. 2.9% expected, according to StreetAccount
The burger behemoth reported earnings of $1.70 per share on $6.05 billion in revenue. According to Thomson Reuters, the Golden Arches was forecasted to earn $1.62 per share on $5.96 billion in revenue.
McDonald’s shares increased more than 4.4% on July 25, hitting a new high of $159.64.
“We’re building a better McDonald’s and more customers are noticing,” CEO Steve Easterbrook said. “Our relentless commitment to running great restaurants and keeping the customer at the center of everything we do is generating broad-based strength and momentum across our entire business.”
McDonald’s said that it shined in the quarter as a result of its national cold beverage value promotion, which offers soft drinks for $1, and the launch of Signature Crafted sandwiches (priced around $5 and $7). With these sandwiches, various locations are able to customize the sandwiches with different toppings, such as maple Dijon and sweet BBQ bacon.
In the latest period, same-store sales increased 6.6% globally, and rose 3.9% in the United States.
According to StreetAccount, Wall Street expected the company to report same-store sales growth of 3.7% globally for the quarter, with same-store sales in the United States increasing 2.9%.
In the report, McDonald’s echoed that its focus will be on four pillars: store renovations, menu innovation, digital ordering, and delivery in order to obtain sustained growth and bring in more customers.
The Golden Arches’ “experience of the future,” such as renovated locations, ordering kiosks and table service, is coming to roughly 650 restaurants in 2017, thus bringing the company’s number of these stores to nearly 2,500.
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