McDonald’s (MCD) has reported better-than-expected second-quarter earnings due primarily to a rebound in sales at its store locations in China.
The quick service restaurant chain reported earnings per share (EPS) of $3.17 U.S. versus $2.79 U.S. that was expected on Wall Street, according to Refinitiv data.
Revenue in the quarter came in at $6.50 billion U.S. compared to $6.27 billion U.S. that had been forecast by analysts.
The company said it spent $18 million U.S. during the April through June period on corporate restructuring, including layoffs and buyouts for some employees.
The company’s global same-store sales rose 11.7%, topping expectations of 9.2%. All three of McDonald’s divisions reported double-digit growth for same-store sales.
In the U.S., the company’s largest market, same-store sales increased 10.3% during Q2.
The company has seen a boost in traffic at its America stores after it resurrected the popular character Grimace and introduced the new “Grimace Birthday Meal” that includes a purple coloured milkshake.
McDonald’s international operated markets reported same-store sales growth of 11.9%. Much of that growth was driven by 14% same-store sales growth in China, where the economy is emerging from Covid-19 lockdowns.
McDonald’s stock rose 2% in premarket trading on news of the Q2 results. The company’s share price has gained 10% this year to trade at $291.75 U.S.
