McDonald’s Corp. (NYSE: MCD) reported its second-quarter financial results before the markets opened on Tuesday. The Golden Arches may have missed its earnings in this report but despite this minor setback it is still one of the best performing Dow stocks.
The company said that it had $1.45 in adjusted earnings per share (EPS), versus a GAAP-EPS of $1.25, on $6.265 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.38 in EPS on revenue of $6.27 billion. In the same period of last year, its EPS came to $1.26, on $6.5 billion in revenue.
Global comparable sales increased 3.1%, reflecting positive comparable sales in all segments, especially Foundational markets (7.7%). However, in the United States comparable sales only increased by 1.8%, from continued contributions of the All Day Breakfast and the McPick 2 menu.
Due to the impact of refranchising, consolidated revenues decreased by 4%, although this was only a 1% decrease in constant currencies.
During this quarter, McDonald’s returned $4.1 billion to shareholders through share repurchases and dividends. This brings the cumulative return to shareholders to $24.4 billion, compared to the targeted return of about $30 billion for the three-year period ending 2016.
Steve Easterbrook, McDonald’s president and CEO, commented on earnings:
At McDonald’s, we are focused on meeting our customers’ needs for high quality, affordable food and beverage choices. Our second quarter performance, which marks our fourth consecutive quarter of positive comparable sales across all business segments, provides a clear indication that customers are responding to the steps we’re taking to deliver the menu and value options they want at the convenience of McDonald’s. We’re making steady progress on transforming our business to satisfy the needs of our customers around the world, despite a challenging environment in several key markets.
Shares of McDonald’s closed Monday at $127.40, with a consensus analyst price target of $130.71 and a 52-week trading range of $87.50 to $131.96. Following the release of the earnings report, the stock was down about 2.3% at $124.51 in early trading indications Tuesday.
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