McDonald's beats Q2 expectations, low-income consumer concerns linger
By Josh White
Date: Wednesday 06 Aug 2025
(Sharecast News) - McDonald's delivered second-quarter earnings and revenue that exceeded Wall Street expectations on Wednesday, buoyed by global growth and a rebound in US sales.
However, the fast-food giant warned that consumer weakness among low-income Americans continued to pose a challenge.
Global comparable sales rose 3.8% in the quarter to 30 June 30, led by international growth and a recovery in US performance.
In the US, same-store sales increased 2.5%, reversing two consecutive quarters of decline.
Sales were driven by new product launches such as McCrispy Chicken Strips, a tie-in with the 'Minecraft' movie, and promotions including the $5 meal deal.
Outside the US, comparable sales rose 4% in international operated markets and 5.6% in international licensed markets, with notable gains in China, Japan, the UK, and Australia.
Systemwide sales rose 8% year-on-year to $6.84bn, with digital sales to loyalty members across 60 markets contributing $9bn in the quarter.
Adjusted earnings per share came in at $3.19, ahead of the $3.15 expected by analysts and up from $3.00 a year earlier.
Net income rose to $2.25bn from $2.02bn.
CEO Chris Kempczinski credited the company's "compelling value, standout marketing, and menu innovation" for the 6% growth in global system sales and added that digital investments were helping improve the experience for customers and staff alike.
However, he noted that "reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently," highlighting continued pressure on that demographic.
"The bifurcated consumer base is why we remain cautious about the overall near-term health of the US consumer," Kempczinski told analysts, adding that visits by low-income consumers across the US quick-service industry had fallen by double digits compared to last year.
Looking ahead, McDonald's said it expected stronger results in the second half of 2025, with easier year-on-year comparisons due to the prior year's E. coli outbreak.
The recent reintroduction of Snack Wraps at a $2.99 promotional price had shown "encouraging" early results, and franchisees had agreed to keep the offer in place through year-end.
At 1004 EDT (1504 BST), shares in McDonald's Corporation were up 2.72% in New York at $306.91.
Reporting by Josh White for Sharecast.com.
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