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McDonald's posted its slowest US same-store sales growth since early 2025, rising just 0.8% in the second quarter ended June 30, as traffic at domestic restaurants fell and the company announced a leadership shake-up.
The chain named Skye Anderson president of its US business, effective immediately, replacing Joe Erlinger. Anderson most recently served as US chief operating officer after leading the company's Global Business Services unit.
CEO Chris Kempczński attributed the weak quarter to both a tough consumer environment and self-inflicted problems.
"We don't have a strategy problem. We simply didn't execute at the level we needed to in the second quarter."
Chris Kempczński, McDonald's
The biggest drag was inconsistent execution of a value menu offering 10 items for $3 or less. Only 60% to 65% of franchisees adopted the suggested pricing structure. Some actually raised prices on items like a small fries.
At the same time, McDonald's pulled back on national digital deals that support its loyalty program.
Operational strain compounded the value problem. McDonald's rolled out a new refresher beverage lineup in May, then layered on FIFA World Cup promotions in June, including meal deals and collectible cups.
Restaurant teams were overwhelmed, service times rose, and customer satisfaction scores fell. The World Cup campaign underperformed expectations, and the company also faced a tough comparison against last year's popular Minecraft movie promotion.
Globally, the picture looked better. Same-store sales rose 1.3% worldwide, supported by stronger results in Australia, Britain, Germany, and Japan. Global revenue rose 4% to $7.1B while net income climbed 5%.
Inflation is squeezing the lower-income consumers who make up a large share of McDonald's customer base, with rising gasoline prices since the start of the war in Iran adding to the pressure.
Anderson's mandate includes resetting the company's value offers and marketing in the US. Kempczński described her as "a proven change agent who can act with urgency." McDonald's said it now expects US same-store sales to return to target levels in 2027.
The company also pushed back its global expansion target, moving its goal of 50,000 restaurants worldwide from end of 2027 to end of 2028, citing inflation in development costs and the current consumer environment.
