McDonald's Corporation (NYSE: MCD) backtracked on markets Thursday, on releasing results for the second quarter ended June 30, 2018.
The fast-food restaurant chain consolidated operating income decreased 1% (4% in constant currencies), primarily due to $92 million of strategic restructuring charges ($85 million related to the previously disclosed restructuring charge for the U.S. business).
Excluding these charges, as well as unrelated strategic charges in the prior year, consolidated operating income increased 2% (decreased 1% in constant currencies)
Diluted earnings per share of $1.90 increased 12%, reflecting $0.09 per share of strategic restructuring charges. Excluding these charges, diluted earnings per share was $1.99, an increase of 15% over prior year earnings per share.
In the U.S., second quarter comparable sales increased 2.6% driven by growth in average check resulting from both product mix shifts and menu price increases. Operating income for the quarter decreased 7% primarily due to the strategic restructuring charge.
Excluding this charge, operating income increased 1% as higher franchised margin dollars were partly offset by lower Company-operated margin dollars.
According to CEO Steve Easterbrook, "We're seeing good performance across our business as our customers tell us that they value and appreciate the moves we're making to elevate the McDonald's experience.
"We're pleased with the results of our international business and the progress we're making in the U.S. on executing on our Velocity Growth Plan priorities. We've now marked 12 consecutive quarters of positive comparable sales, and we are confident that we're executing the right strategy to achieve long-term, profitable growth."
Shares tumbled $2.22, or 1.4%, to $156.67
