McDonald’s sales hit a speed bump

mcdonalds play place exterior

Following two quarters of notable same-store sales growth, McDonald’s comps missed financial predictions during its most recent quarter, leading some analysts to question the long-term efficacy of the brand’s turnaround.

The chain’s U.S. comps rose 1.8% during Q2, compared to analysts’ expectations of 3.4%. Its global comps gain was also softer than seen of late, coming in at 3.1%.

McDonald’s recent promotions of all-day breakfast and its McPick 2 menu have garnered a slew of attention from Golden Arches fans; but despite driving traffic gains, these menus—and the cheaper price point of their featured items—may be hindering sales growth, CNBC notes.

McDonald’s CEO Steve Easterbrook cited softening sales across the restaurant industry as a contributor to the slowdown. “We’re making steady progress on transforming our business to satisfy the needs of our customers around the world, despite a challenging environment in several key markets,” he said in a statement.

Many limited-service chains, including Starbucks and Taco Bell, also reported cooler comps during their latest quarter. In addition, consumers have cut visits to full-service spots by as much as 5%.

Despite some skepticism from Wall Street, McDonald’s continues to introduce new twists to its turnaround plan. The chain is doubling down on efforts to regionalize its menu, and items are being added to its all-day breakfast, including diners’ beloved Egg McMuffin and McGriddles. In light of this month's Pokemon Go craze, the chain signed a deal to turn its 3,000 locations in Japan into Pokemon gyms where players can train their monsters and collect game items.

McDonald’s shares fell more than 3% after its earnings were released Tuesday, according to CNBC. 


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