OAK BROOK Ill. McDonald’s Corp. said its McCafé premium coffees helped brew a same-store sales increase during its second quarter, but profit still fell 8 percent because of a stronger U.S. dollar that reduced global revenue.
McDonald’s profit for the second quarter ended June 30 totaled $1.09 billion, or 98 cents per share, compared with year-ago earnings of $1.19 billion, or $1.04 per share. The company said the negative impact of global currency translations accounted for a 9-cents-per-share hit to latest-quarter earnings.
McDonald’s also faced a tough comparison against the second quarter of last year, when it booked a 10-cents-per-share gain from the sale of a minority interest in the Pret A Manger fast-casual chain.
Second-quarter corporate revenue fell 7 percent to $5.65 billion. Excluding the effects of currency conversion, revenue would have increased 4 percent, the company noted.
Top line sales trends remained strong, the company said. Same-store sales increased 3.5 percent in the United States, helped mainly by the debut of the company’s McCafé line of premium espresso-based beverages and an accompanying advertising push. McDonald’s global same-store sales rose 4.8 percent, including a 6.9-percent jump in Europe and a 4.4-percent rise in the company’s Asia-Pacific, Middle East and Africa region.
“I am pleased with McDonald’s results and remain confident in our outlook for the year,” chief executive Jim Skinner said in a statement. “As we begin the third quarter, we expect to report July [same-store] sales similar to or better than June.”
The chain’s June same-store sales increased 1.8 percent in the United States. Certain analysts were skeptical that results could improve substantially from that point as McDonald’s begins to lap strong year-ago performances and the U.S. economy continues to suffer from rising unemployment.
McDonald’s launched its Angus Third Pounder burgers systemwide in early July. The premium hamburgers had been in test for about two years. The chain also recently said it would offer free samples of McCafé Mochas every Monday through Aug. 3 to drive trial of the new drinks.
Oak Brook-based McDonald’s operates or franchises about 31,000 locations worldwide, including about 14,000 units in the United States.
Contact Mark Brandau at [email protected].
