A sign is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | Getty Images
McDonald’s on Tuesday reported better-than-expected quarterly earnings as price hikes helped offset higher costs and restaurant closures in Ukraine and Russia.
Shares of the company were roughly flat in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.55 adjusted
- Revenue: $5.72 billion vs. $5.81 billion expected
McDonald’s reported second-quarter net income of $1.19 billion, or $1.60 per share, down from $2.22 billion, or $2.95 per share, a year earlier. The company reported a $1.2 billion charge related to the sale of its Russian business due to the war in Ukraine.
Excluding that charge, a French tax settlement and other items, the fast-food giant earned $2.55 cents per share. Wall Street was expected the company to report earnings per share of $2.47, according to Refinitiv estimates. It is unclear if those numbers are comparable.
Net sales fell 3% to $5.72 billion, hurt in part by the closure of McDonald’s Russian and Ukrainian restaurants. Global same-store sales rose 9.7% in the quarter, fueled by strong international growth. Russian were locations excluded from the company’s same-store sales calculations, but Ukrainian restaurants were included.
US same-store sales increased 3.7% in the quarter, topping StreetAccount estimates of 2.8%. The company credited strategic price hikes and its value offerings for its strong performance. Last quarter, McDonald’s executives said some low-income consumers were trading down to cheaper options in response to inflation.