McDonald’s is set to unveil its second-quarter earnings report, with analysts predicting an earnings per share of $3.07 and revenue of $6.61 billion. Despite these projections, the fast-food giant’s stock has experienced a 15% decline this year due to worries about consumer spending and the overall state of the restaurant industry.
In response to shrinking consumer base, McDonald’s has resorted to offering value meals as a strategy to capture market share. The company recently introduced a $5 meal deal in the U.S. to attract more customers. However, these initiatives may not have a significant impact on their second-quarter results as the promotions were implemented towards the end of the period.
Analysts anticipate that McDonald’s U.S. same-store sales will remain stagnant for the quarter, following a substantial 10.3% increase in the previous year. This could be attributed to the increased competition within the industry, as well as ongoing challenges in the Middle East due to boycotts.
While McDonald’s continues to face struggles in the Middle East market, the company is taking decisive actions to address the situation. In an effort to strengthen its global presence, McDonald’s recently acquired 225 restaurants operated by its Israeli franchisee, signaling a commitment to expanding its international footprint.