McDonald’s Sees U.S. Sales Rebound, But Low-Income Consumer Weakness Remains a Concern

NEW YORK – McDonald’s reported better-than-expected earnings and revenue for the second quarter on Wednesday, as U.S. same-store sales returned to growth for the first time in three quarters. However, company executives warned that economic pressures on low-income consumers continue to weigh on broader traffic trends.

The fast-food chain said same-store sales rose 3.8%, its largest quarterly gain in nearly two years. U.S. same-store sales were up 2.5%, driven by promotional campaigns, new product launches, and improved value perception.

“Reengaging the low-income consumer is critical,” CEO Chris Kempczinski said on the earnings call. “They typically visit our restaurants more frequently than middle- and high-income consumers.”

Despite the improved sales figures, Kempczinski said the company remains cautious about the short-term outlook, citing persistent challenges in the broader quick-service industry.

Earnings Beat Estimates

McDonald’s posted net income of $2.25 billion, or $3.14 per share, for the three-month period ending June 30, up from $2.02 billion, or $2.80 per share, a year earlier.
Excluding one-time items, adjusted earnings came in at $3.19 per share, ahead of the $3.15 expected by analysts surveyed by LSEG.

Revenue rose 5% to $6.84 billion, also exceeding Wall Street forecasts of $6.7 billion.

The company credited its second-quarter performance to strong brand marketing and a focus on value, including the $5 Meal Deal, the introduction of McCrispy Chicken Strips, and a promotional tie-in with the upcoming Minecraft movie.

Shares of McDonald’s rose more than 2% in early trading.

Domestic Pressure, Global Gains

Kempczinski said overall traffic across the U.S. quick-service restaurant industry remains under pressure, particularly among lower-income households.

“Visits across the industry by low-income consumers once again declined by double digits versus the prior year,” he said.

To counter the trend, McDonald’s is working with franchisees to introduce new affordability measures. One such initiative, the return of Snack Wraps at a $2.99 promotional price, rolled out after the quarter ended and has shown “encouraging” early results.

Outside the U.S., the company reported stronger momentum. Same-store sales in its international developmental licensed markets, which include China and Japan, increased 5.6%. Its international operated markets, including the U.K., Australia, and Canada, saw growth of 4%.

“Internationally, it’s not as competitive a market as the U.S.,” Kempczinski said. “It’s a little easier for us to stand out and represent good value.”

Executives said value and affordability scores improved across key international regions.

Outlook

The company expects performance to strengthen in the second half of 2025, particularly in the fourth quarter as it laps softer comparisons stemming from the E. coli outbreak that impacted business last year.

No full-year guidance was issued, but management said focus will remain on value, menu innovation, and consumer affordability as macroeconomic uncertainty continues.