McDonald’s shares shrugged away disappointing financials

McDonald’s (NYSE:MCD) investors shrugged off what were, on the face of it, disappointing financial results – with the fast-food share actually rising close to 5% in New York.

On Monday, McDonald's reported second-quarter earnings and revenue  short of expectations.

Revenue totalled $6.49 billion, up 2% on the same period last year but notably below the Wall Street consensus forecast of $6.63 billion.

Earnings (adjusted) per share came in at $2.97, not $3.07 as predicted by analysts.

It comes as global same-store sales fell by 1% - which makes it McDonald’s first declining quarter since the COVID lockdown days of 2020.

US operations saw a 0.7% drop in same-store sales, similarly it was the first decline in this metric for four years.

McDonald’s blamed reduced foot traffic and said consumers had become more selective with spending due to inflation. It meanwhile,e announced it planned to extend its promotional $5 meal deal, which was recently introduced at the end of June.

The fast food firm needs a comprehensive rethink of its pricing strategy, chief executive Chris Kempczinski noted.

In New York, MCD shares were up $11.21 or 4.45% changing hands at $263.06, after traded as low as $250.23 earlier this morning.