McDonald's earnings beat, driven by BTS promotion and new chicken sandwich
McDonald's topped Wall Street's estimates for its second-quarter earnings and revenue.
People wear protective face masks outside McDonald's in Union Square as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on July 30, 2020 in New York City.
Noam Galai | Getty Images
McDonald's on Wednesday reported double-digit U.S. same-store sales growth compared with 2019 levels in its latest quarter, fueled by higher demand for its chicken menu items.
Shares of the company fell less than 1% in premarket trading.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Earnings per share: $2.37 adjusted vs. $2.11 expectedRevenue: $5.89 billion vs. $5.6 billion expected
The fast-food giant reported fiscal second-quarter net income of $2.22 billion, or $2.95 per share, up from $483.8 million, or 65 cents per share, a year earlier.
Excluding strategic gains and U.K. income tax benefits, McDonald's earned $2.37 per share, beating the $2.11 per share expected by analysts surveyed by Refinitiv.
Net sales rose 57% to $5.89 billion, topping expectations of $5.6 billion. Global same-store sales jumped 40.5% from a year ago and 6.9% on a two-year basis.
U.S. same-store sales climbed 25.9% in the quarter and 14.9% on a two-year basis. The company credited strong sales of its new chicken sandwich, which launched in February, and its "famous orders" promotion with K-pop group BTS, which includes an order of McNuggets and special sauces.
As the fast-food chain looks to hold onto the digital sales it gained during the pandemic, it launched a U.S. loyalty program in early July. So far, more than 12 million consumers have joined the program.
Outside the U.S., McDonald's has seen a strong recovery in many regions. Its international operated markets segment, which includes the United Kingdom and France, reported same-store sales growth of 75.1% compared with a year ago, or 2.6% on a two-year basis. McDonald's said that easing restrictions and fewer temporary closures helped sales for that segment.
In the international developmental licensed markets segment, same-store sales were roughly flat on a two-year basis. The division, which includes Brazil and Japan, saw positive same-store sales across all of its regions compared with a year ago.