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Kiosks for ordering food sit in the dining area of a McDonald’s restaurant located inside the company’s new corporate headquarters on June 4, 2018 in Chicago.
Shares of McDonald’s were flat in premarket trading Thursday after the company posted better-than-expected second-quarter earnings.
Here is what happened:
- Earnings: $1.99 per share vs. $1.92 per share expected, according to Thomson Reuters
- Revenue: $5.35 billion vs. $5.32 billion expected
- Same-store sales: 4 percent growth vs. 3.5 percent expected, according to Street Account
“We’re seeing good performance across our business as our customers tell us that they value and appreciate the moves we’re making to elevate the McDonald’s experience,” Steve Easterbrook, CEO of McDonald’s said in a statement. “We’re pleased with the results of our international business and the progress we’re making in the U.S. on executing on our Velocity Growth Plan priorities. We’ve now marked 12 consecutive quarters of positive comparable sales, and we are confident that we’re executing the right strategy to achieve long-term, profitable growth.”
Net income rose to $1.49 billion, or $1.90 per share, from $1.39 billion, or $1.70 per share, a year earlier. Excluding items, McDonald’s earned $1.99 per share, better than the $1.92 per share analysts had expected, according to Thomson Reuters.
Revenues fell 12 percent to $5.35 billion, still beating analyst forecasts of $3.32 billion.
It’s been more than a year since the company’s executives touted several big changes that the chain would be making to win back the more than 500 million visits it lost since 2012. This included innovating its menu, renovating its stores, offering mobile and kiosk ordering and partnering with UberEats to test delivery.
The company’s stock hit a record high of nearly $179 per share earlier this year, but it closed Wednesday at $158.89. Shares are down nearly 8 percent since January.