McDonald’s (MCD) Q2 2025 earnings

McDonald’s reported better-than-expected quarterly earnings and revenue on Wednesday, driven by successful promotions in its U.S. restaurants.

While the chain’s performance has improved, executives are concerned about the economic well-being of low-income consumers. McDonald’s is collaborating with its U.S. franchisees to make its core menu items more affordable beyond the existing promotions.

CEO Chris Kempczinski emphasized the importance of re-engaging low-income consumers due to their higher frequency of visits compared to middle- and high-income consumers. The company remains cautious about the short-term health of the U.S. consumer.

McDonald’s anticipates stronger results in the second half of the year, especially considering easier comparisons in the fourth quarter compared to last year’s challenges.

The company’s second-quarter results exceeded Wall Street’s expectations:

• Earnings per share: $3.19 adjusted vs. $3.15 expected
• Revenue: $6.84 billion vs. $6.7 billion expected

Net income for the quarter was $2.25 billion, with earnings per share of $3.14. Excluding charges, McDonald’s earned $3.19 per share.

Revenue increased by 5% to $6.84 billion, driven by value offerings, marketing strategies, and new menu items that contributed to a 6% rise in system sales.

Same-store sales grew by 3.8%, marking the chain’s largest increase in nearly two years. U.S. restaurants saw a 2.5% growth in same-store sales, reversing previous declines.

McDonald’s U.S. sales were boosted by partnerships with the “Minecraft” movie and the introduction of McCrispy Chicken Strips.

Internationally, the demand for Big Macs and french fries remained strong, with notable growth in markets like Japan, China, the United Kingdom, Australia, and Canada.

The company’s focus on value and affordability has resonated well with consumers in key markets.