McDonald's Corp. exceeded Wall Street expectations in the second quarter, posting a 3.8% rise in global comparable sales as budget-friendly meal promotions and a high-profile tie-in with "The Minecraft Movie" drove traffic across major markets. The result surpassed the 2.4% growth forecast by analysts, according to LSEG data, and lifted revenue 5% year-over-year to $6.8 billion.
Shares of the Chicago-based fast-food giant rose 3.4% in premarket trading on Wednesday following the earnings release.
Sales at U.S. locations open at least a year increased 2.5%, rebounding from two consecutive quarters of declining traffic. The company credited a mix of promotional activity and new product launches, including the debut of McCrispy Chicken Strips and renewed $5 value meals, for the turnaround.
In late March, McDonald's rolled out a limited-time Happy Meal for kids and adults tied to Warner Bros.' "Minecraft Movie," which grossed nearly $1 billion globally. The campaign ran in 100 markets and was described by the company as its largest marketing push ever.
Last quarter, CEO Chris Kempczinski acknowledged that low- and middle-income customers had been pulling back on spending, prompting McDonald's to focus on menu innovation and affordability. He is expected to provide additional commentary during the company's analyst call.
Foot traffic data from Placer.ai showed McDonald's outperformed its peers, with U.S. visits rising 0.8% compared to a 0.7% decline across the broader quick-service restaurant (QSR) segment.
"While rivals like Yum Brands and Chipotle struggled with consumer pullback, McDonald's played to its strengths by leaning into value, nostalgia and limited-time promotions," said Zak Stambor, an analyst at eMarketer.
International Operated Markets sales rose 4%, helped by demand recovery in the UK, Canada, and France. In its International Developmental Licensed Markets segment-where locations are operated by partners-sales climbed 5.6%, led by strong performance in Japan.
Adjusted net income rose 7% to $3.19 per share, topping analyst projections of $3.15.
Looking ahead, McDonald's plans to continue leveraging nostalgic branding and product innovation. The company is preparing to launch a "McDonaldland" meal for adults featuring a mystery-flavored shake and will reintroduce its popular Snack Wrap. In September, 500 stores will begin testing new beverage offerings under the CosMc's sub-brand following the closure of the original spinoff concept.
