\A sign is posted outside a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | Getty Images
McDonald’s reported better-than-expected quarterly earnings on Tuesday as price hikes helped offset higher costs and restaurant closures in Ukraine and Russia.
The company’s shares were roughly flat in premarket trading.
Here’s what the company reported compared to what Wall Street expected, according to a survey of analysts by Refinitiv:
- Earnings per share: Adjusted $2.55
- Revenue: $5.72 billion vs. $5.81 billion expected
McDonald’s reported second-quarter net income of $1.19 billion, or $1.60 per share, down from $2.22 billion, or $2.95 per share, a year earlier. The company reported a $1.2 billion charge related to the sale of its Russian business due to the war in Ukraine.
Excluding that charge, a French tax settlement and other items, the fast-food giant earned 2.55 cents per share. According to Refinitiv estimates, Wall Street expected the company to report earnings per share of $2.47. It is not clear whether these figures are comparable.
Net sales fell 3% to $5.72 billion, hurt in part by the closing of McDonald’s Russian and Ukrainian restaurants. Global same-store sales rose 9.7% in the quarter, driven by strong international growth. Russian locations were excluded from the company’s same-store sales calculations, but Ukrainian restaurants were included.
U.S. same-store sales rose 3.7% in the quarter, beating StreetAccount estimates of 2.8%. The company credited strategic price increases and its value offerings for its strong performance. Last quarter, McDonald’s executives said some low-income consumers were trading down to cheaper options in response to inflation.