On July 22, 2024, a McDonald's restaurant was visited in Burbank, California.
Mario Tama |
MC Donalds is expected to announce its second-quarter results on Monday before the stock market opens.
Here's what Wall Street analysts surveyed by LSEG expect from the company:
- Earnings per share: USD 3.07 expected
- revenue: 6.61 billion US dollars expected
The burger chain's shares have fallen 15 percent since the beginning of the year, reflecting investor concerns about consumer spending and the restaurant industry.
McDonald's executives warned that restaurants are fighting for an increasingly smaller customer base and many of them are trying to gain market share with cheap menus. In the US, McDonald's offered a $5 meal deal last month to attract new customers. On Monday, the company told its US system that it plans to extend the promotion.
But these discounts only came into effect at the end of the chain's second quarter. According to StreetAccount estimates, Wall Street expects the company to report flat sales at its U.S. stores for that period. A year ago, McDonald's U.S. store sales rose 10.3 percent, thanks to viral advertising featuring its mascot Grimace.
Outside the US, McDonald's is likely to still be suffering from boycott-related sales losses in the Middle East. At the beginning of the second quarter, the company bought the 225 restaurants of its Israeli franchisee.
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