McDonald's Corp. (MCD) - Get McDonald's Corporation (MCD) Report posted stronger-than-expected second quarter earnings Wednesday, thanks in part to a solid rebound in U.S. sales are restaurants around the country returned to full service in the waning months of the coronavirus pandemic.
Shares traded lower in early Wednesday dealing, however, after CEO Chris Kempczinski said staffing challenges remain elevated while noting that he expects "pandemic-related stops and starts" in key markets around the world.
McDonalds said diluted earnings for the three months ending in June were pegged at $2.37 per share, up 260% from the same period last year and 36 cents ahead of the Street consensus forecast. Group revenues, McDonalds said, rose 57% to $5.89 billion, again firmly ahead of analysts' estimates of a $5.6 billion tally.
McDonalds said same-store sales jumped 40.5% for the period on a global basis, while U.S. sales surged by a much-better-than-expected 25.9%.
"Our performance is a continued demonstration of the broad-based strength and resiliency of our business as global comp sales in the second quarter increased nearly 7% over 2019," said CEO Chris Kempczinski. "For 65 years, we've created iconic experiences for billions of people around the world. Along the way, we've always focused on following our customers' needs, finding the most convenient and engaging ways for them to enjoy McDonald's."
"It's clear that our next chapter will be driven by our leadership in digital," he added. "As we build on our momentum and embed our digital capabilities through the customer experience, I'm thrilled that Manu Steijaert will be taking on the newly created role of Chief Customer Officer. His team will deliver the seamless omnichannel experience that our customers want and McDonald's can provide."
McDonald's shares were marked 1.45% lower in early trading following the earnings release to change hands at $243.10 each.
After the close of trading last night, Starbucks Corp. (SBUX) - Get Starbucks Corporation Report, the world's biggest coffee chain, posted record quarterly earnings and an improved 2021 forecast as customers returned to stores in key markets as economies emerged from pandemic-triggered lockdowns.
U.S. comparable sales surged 83% from last year as shops re-opened, while comps in China were up 19%. International comparable sales rose 41%, Starbucks said.
Starbucks shares were marked 3% lower in at $122.21 each in early Wednesday dealing.