McDonald's stock rises after company reverses US sales slump Brooke DiPalmaAugust 6, 2025 at 6:06 AM McDonald's (MCD) reported a return to sales growth in the second quarter on Wednesday as the fast food giant shook off the overhang from an E.
- - McDonald's stock rises after company reverses US sales slump
Brooke DiPalmaAugust 6, 2025 at 6:06 AM
McDonald's (MCD) reported a return to sales growth in the second quarter on Wednesday as the fast food giant shook off the overhang from an E. coli outbreak late last year and economic uncertainty that weighed on consumers in the early part of 2025.
The company reported global comparable sales — or sales at restaurants in operation for more than one year — jumped 3.8%, more than the expected 2.5% increase that had been forecast, according to Bloomberg data.
US same-sales jumped 2.5% in the company's fiscal second quarter, more than the 2.3% analysts had expected and a marked turnaround from the 3.6% drop posted during the company's fiscal first quarter reported back in May. US same-store sales fell 0.7% in the same quarter last year.
McDonald's stock rose 3% following the results.
McDonald's CEO Chris Kempczinski called this quarter "a testament to the power of compelling value, standout marketing, and menu innovation," in the company's earnings release.
Second quarter revenue clocked in higher than expected at $6.84 billion, more than the $6.70 billion predicted. That's also up from $6.49 billion a year ago when Kempczinski told investors it was "clear that our value leadership gap has recently shrunk."
Adjusted earnings per share ticked higher at $3.19, five cents more than analysts expected and up from $2.97 this time period last year.
International developmental markets saw a 5.6% same-store sales increase led by Japan, which was more than the 3.6% increase forecasted. International operating markets sales growth moved higher too, up 4%, far more than the 1.8% analysts projected.
In the quarter, restaurants that have not been open for more than a year saw their sales spike 6%.
In its most recent quarter, McDonald's sought to emphasize its value leadership as it leaned into offerings like the Meal Deal, and innovations like its McCrispy Chicken Strips and marketing with its Minecraft Movie promotion.
Wall Street expects same-store sales to grow 1.9% for the full fiscal year, with US same-store sales up 1.20%. The company didn't update its forecast in Wednesday's earnings release.
Okeechobee, Florida, Highway 441, McDonald's fast food restaurant, Courier Parking sign, McDelivery service, order pickup zone, mobile app order promotion, poster . (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images) (Jeff Greenberg via Getty Images)
Ahead of the quarter, analysts were optimistic the company would paint a rosier outlook for the second half of the year, as it launched the return of the Snack Wrap on July 10, which is part of its current quarter. McDonald's reaffirmed its 2025 fiscal year financial targets back in May.
"We believe the July commentary with the recent launch of expanded value and Chicken Snack Wrap at $2.99 should have same-store sales growth back in [the] mid-single digit range with positive traffic," Jefferies analyst Andy Barish said in a note.
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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