McDonald’s sales fell short of expectations in the second quarter, a sign that inflation and menu price increases could be taking a toll on U.S. demand.
The Chicago burger giant said its revenue fell 3% to $5.72 billion in the April-June period. That was short of Wall Street’s forecast of $5.8 billion, according to analysts polled by FactSet.
McDonald’s said same-store sales, or sales at stores open at least a year, were up nearly 10% worldwide. That was higher than the 6.8% that analysts had expected.
U.S. same-store sales were up 3.7%. Earlier this spring, McDonald's said it was starting to see some consumers trade down to lower-priced items or order fewer items at a time.
McDonald’s said its earnings fell 46% to $1.19 billion. That included $1.2 billion in charges related to the sale of its 850 stores in Russia.
McDonald’s temporarily closed its Russian stores in March but continued paying its 62,000 employees. In mid-May, McDonald’s sold its Russian restaurants to a McDonald’s licensee who operates 25 restaurants in Siberia. The restaurants began reopening last month under a new name: Vkusno-i Tochka (Tasty-period).
Excluding one-time items, McDonald's earned $2.55 per share. That was ahead of Wall Street’s forecast of $2.45 per share.
McDonald's shares were up slightly in premarket trading.