McDonald's reports lower Q2 sales, charges weigh down profit

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McDonald's reports lower Q2 sales, charges weigh down profit

Associated Press | Tuesday, July 26, 2022 8:23 a.m.

A sign is shown April 23 in front of the McDonald’s restaurant along Allegheny Avenue on Pittsurgh’s North Side.

McDonald’s sales fell short of expectations in the second quarter, a sign that inflation and menu price increases could be taking a toll on U.S. demand.

The Chicago burger giant said its revenue fell 3% to $5.72 billion in the April-June period. That was short of Wall Street’s forecast of $5.8 billion, according to analysts polled by FactSet.

McDonald’s said same-store sales, or sales at stores open at least a year, were up nearly 10% worldwide. That was higher than the 6.8% that analysts had expected. But the company said U.S. same-store sales were up 3.7%.

McDonald’s said its earnings fell 46% to $1.19 billion. That included $1.2 billion in charges related to the sale of its 800 stores in Russia in May.

Excluding one-time items, the company earned $2.55 per share. That was ahead of Wall Street’s forecast of $2.45 per share.

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