McDonald's Corporation has reported its second-quarter 2024 results, showing consolidated revenues of nearly $6.5 billion, representing an increase of about 1% in constant currencies compared to the prior year. The systemwide sales to loyalty members across 50 loyalty markets were over $26 billion for the trailing twelve-month period and approximately $7 billion for the quarter.
The global comparable sales decreased by 1.0%, with the U.S. experiencing a decrease of 0.7%, international operated markets segment decreasing by 1.1%, and international developmental licensed markets segment decreasing by 1.3%.
In terms of key financial metrics, the operating income decreased by 6% (5% in constant currencies), and diluted earnings per share was $2.80, a decrease of 11% (10% in constant currencies). Excluding certain charges, the diluted earnings per share was $2.97, a decrease of 6% (5% in constant currencies).
Looking at specific financials, for the second quarter of 2024, the revenues were flat (increased 1% in constant currencies), operating income decreased by 6% (5% in constant currencies), and net income decreased by 12% (11% in constant currencies). The diluted earnings per share also decreased by 11% (10% in constant currencies).
For the six months ended June 30, 2024, the revenues increased by 2% (2% in constant currencies), while the operating income increased by 1%. However, the net income decreased by 4% (3% in constant currencies), and the diluted earnings per share decreased by 2% (2% in constant currencies).
McDonald's attributed the results to various factors, including negative comparable sales across all segments, with the U.S. results driven by negative comparable guest counts offset by average check growth due to strategic menu price increases.
The company's results for 2024 included pre-tax charges related to non-cash impairment charges associated with the anticipated future sale of McDonald's business in South Korea and restructuring charges associated with the company's internal effort to modernize ways of working.
Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $252.0. For more information, read the company's full 8-K submission here.