McDonald reports jump in Q2 profits; US sales strong

mcdonaldsNEW YORK: McDonald’s reported higher second-quarter profits Tuesday behind strong comparable sales in key markets, including the United States.

Net income for the quarter ending June 30 was US$1.4 billion, up 28% from the year-ago period in results that easily topped analyst expectations.

Revenues dipped three percent to US$6.0 billion, partly due to the strong dollar and the refranchising of restaurants.

Chief executive Steve Easterbrook, who was appointed in 2015 amid a lengthy slump at McDonald’s, said the results showed progress following efforts to improve service and simplify the menu in its home market.

The United States accounts for about one-third of McDonald’s revenues.

“We’re building a better McDonald’s and more customers are noticing,” 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.”

Comparable sales rose 3.9% in the United States following promotions around cold beverages and the launch of “Signature Crafted” premium sandwiches.

McDonald’s said sales were also strong in Britain, Canada, Germany and China.

Shares rose 2.9% to US$156.20 in pre-market trading.