McDonald’s stock is under pressure as US sales growth slows. The main problem for McDonald’s is its US business. Sales at US restaurants open for at least a year rose only 0.8% in the second quarter.
The 0.8% growth was weaker than expected. Analysts surveyed by LSEG had expected US comparable sales to increase by about 1.06%. US sales growth also slowed sharply from last year. Comparable sales had increased 2.5% a year earlier, helped by strong customer interest in McDonald’s meals tied to “A Minecraft Movie.”
McDonald’s sales slow in the US
The weaker sales show that many Americans are becoming more careful with their money. Higher prices for basic goods and fuel have left lower-income consumers with less money to spend on eating out, according to Reuters. Lower-income customers are especially important to McDonald’s. The company has been trying to bring these customers back by offering cheaper meals, discounts and other promotions.
McDonald’s value deals fail to lift sales
McDonald’s introduced a simpler McValue menu in April. The menu includes 10 items priced at $3 or less, as the company tried to make eating at McDonald’s more affordable. The value deals have not been enough to lift US sales strongly. Reuters reported that McDonald’s promotions failed to attract enough lower-income customers, who have been cutting back on restaurant spending because of economic worries.
McDonald’s faces strong competition
McDonald’s has used several other promotions to protect its market share. These include discounted breakfast offers, the revamped McValue platform and a wider selection of specialty drinks such as refreshers and crafted sodas.
The company is facing tough competition for customers. McDonald’s is competing not only with other fast-food chains but also with convenience stores and people choosing to prepare meals at home.
McDonald’s also had a difficult comparison with last year. The company was going up against a strong second quarter in 2025, when its Minecraft-themed meal and Snack Wrap promotions helped bring more customers into restaurants.
Global McDonald’s sales also slow
Global sales also slowed. McDonald’s global comparable sales increased 1.3% in the second quarter, compared with a 3.8% increase a year earlier. Sales in McDonald’s international operated markets also grew more slowly. Comparable sales in that segment increased 1.5%, down from 4% a year earlier.
McDonald’s profit beats estimates
McDonald’s had warned investors about pressure on consumers earlier this year. CEO Chris Kempczinski said in May that rising macroeconomic uncertainty was hurting consumer spending.
Higher gasoline prices added to the pressure on household budgets. Despite the weaker sales, McDonald’s reported stronger-than-expected profit. The company earned $2.36 billion, or $3.32 per share, for the three months ended June 30.
McDonald’s had earned $2.25 billion, or $3.14 per share, a year earlier. Adjusted earnings also beat Wall Street expectations. McDonald’s reported adjusted earnings of $3.38 per share, compared with the $3.32 per share analysts had expected, according to FactSet. McDonald’s revenue rose to $7.1 billion, from $6.84 billion a year earlier. However, revenue came slightly below expectations.
McDonald’s gets new US leader
The strong profit helped limit the pressure on the stock. McDonald’s shares initially rose in premarket trading after the company reported better-than-expected earnings, even though its US sales missed expectations. McDonald’s shares were up about 1.4% to 1.6% in premarket trading following the earnings report.
The company is now changing leadership in its US business. McDonald’s announced that Skye Anderson will become president of McDonald’s USA. The leadership change is part of a push to improve US performance. Kempczinski said McDonald’s sees an opportunity to “raise the bar” in the US and speed up growth in its largest market.
The biggest challenge is getting budget-conscious customers to spend more. McDonald’s has added value offers, but the latest results show that discounts alone have not been enough to drive strong US sales growth.
Overall, the results give investors a mixed picture. McDonald’s made more profit and beat earnings expectations, but US comparable sales grew only 0.8% and missed forecasts, showing that American consumers remain cautious about spending. The key issue for McDonald’s going forward will be its US recovery. The company will need to show that its McValue menu, discounts, promotions and new US leadership can bring customers back and improve sales growth.