A McDonald’s restaurant is seen in Burbank, California on July 22, 2024.
Mario Tama | Good pictures
- Stock Gains: $3.07 expected
- revenue: $6.61 billion expected
The burger chain’s stock has fallen 15% year to date, fueled by investor concerns about the health of both consumer spending and the restaurant industry.
McDonald’s executives have warned that restaurants are fighting for a small group of customers, many of whom are releasing pricier meals to steal market share. In the US, McDonald’s has been running a $5 meal deal for the past month to drive new traffic; On Monday, the company said it plans to extend the ad to its US organization.
But those discounts only kicked in at the tail end of the chain’s second quarter. Wall Street expects the firm to report flat US same-store sales for the period, according to Street Account estimates. A year ago, McDonald’s domestic same-store sales rose 10.3%, boosted by its viral ad featuring the mascot Grimace.
Outside of the U.S., McDonald’s is still likely to see boycott-related sales declines in the Middle East. At the start of the second quarter, the company acquired 225 restaurants operated by its Israeli franchisee.
