McDonald’s Corp.’s stock moved higher in afternoon trading Wednesday, after the fast-food giant beat Wall Street estimates for profit and revenue, as customers boosted what they spend per visit.
The restaurant chain said U.S. comparable sales were “primarily driven by positive check growth,” as customers spent more on meals. The increase was driven by higher pricing and changes in the mix of products sold.
The stock climbed 3.6% as the third-biggest gainer among the 30 stocks in the Dow Jones Industrial Average’s It’s the stock’s largest one-day advance since Feb.10, when it rose 4.8%.
McDonald’s said cost pressures in some markets have become more challenging, particularly in Europe, but it stuck to its financial forecasts for the year, even with the impact of tariffs.
Chief Executive Chris Kempczinski said the performance of middle-market consumers improved from the previous quarter as the company focused on “compelling value, standout marketing and menu innovation.”
He cited challenges from continued weakness in lower-income consumers, however, and said real incomes are down despite higher wages in this group, which faces “a lot of anxiety and unease” about the economy.
Still, the company said it’s “made good progress with its value offerings” with “encouraging” results thus far from its $2.99 snack wrap. It’s rolling out new offerings under its McValue platform and has marked the first anniversary of its $5 Meal Deal.
It’s also readying the Aug. 12 launch of its new adult-themed McDonaldland Meal, featuring collectible milkshake glasses with images of Mayor McCheese, Ronald McDonald, Grimace and the Hamburglar appearing in a fresh promotion for the first time in 20 years.
McDonald’s said its second-quarter profit rose 11% from the same period a year ago to $2.25 billion, or $3.14 a share, from $2.02 billion, or $2.80 a share, in the year-ago period.
Adjusted profit, which excludes nonrecurring items, of $3.19 a share beat the FactSet analyst consensus of $3.14 a share.
Revenue grew 5% to $6.84 billion, ahead of analyst expectations of just under $6.7 billion.
Global comparable sales, or sales of stores open at least 13 months, increased 3.8%, ahead of Wall Street’s expectations of 2.6%.
McDonald’s said its U.S. same-store sales rose 2.5%, reversing a year-ago decline of 0.7%.
Chief Executive Kempczinski said about a quarter of its U.S. customers are enrolled in the company’s loyalty program, which offers “exceptional” value and increases frequency of visits to its locations.
“Getting more and more consumers to be in our loyalty program, that’s how we’re going to drive this business because it’s going to be frequency-led growth,” Kempczinski said. “So I feel good about that.”
Raymond James analyst Brian Vaccaro said the company’s U.S. comparable sales were boosted by its Minecraft Movie Meal and Happy Meals it launched with the April cinematic release of “A Minecraft Movie.”
Edward Jones analyst Matt Arnold reiterated a hold rating on McDonald’s and said the company continues to face a tough operating environment, but managed to improve its sales growth.
“Sales still reflect a challenging backdrop for consumers as they grapple with higher prices, particularly lower-income families,” Arnold said. “The large price increases in the restaurant industry over the past few years is most likely a headwind that is causing consumers to cut back on certain discretionary purchases.”
McDonald’s said it still expects to open about 2,200 restaurant locations around the world in 2025, including about a quarter of them in the U.S. and about half in China.
As of Tuesday’s closing bell, McDonald’s stock has risen 3.1% in 2025, while the S&P 500 is up 7.1% and the Dow Jones Industrial Average has advanced 3.7%.
