McDonald's Q2 profit beats, names new US president

McDonald s reported strong second-quarter earnings, with net income of $2.36 billion ($3.32 per share) for the quarter ended June 30, up from $2.25 billion ($3.14 per share) a year earlier. Adjusted earnings of $3.38 per share beat analyst expectations of $3.32 per share. Revenue rose to $7.1 billion from $6.84 billion, slightly missing the $7.13 billion estimate. Global same-store sales increased 1.3%, but U.S. same-store sales grew only 0.8%, a sharp slowdown from 2.5% a year ago, reflecting cautious consumer spending. The company warned in May that high gas prices and consumer anxiety over the U.S. conflict with Iran could dent sales. To attract budget-conscious customers, McDonald s introduced a simplified McValue menu in April with 10 items priced at $3 or less. The company also announced that Skye Anderson will become president of McDonald s USA, succeeding the previous head. CEO Chris Kempczinski acknowledged the need to improve performance in the U.S., its largest market. Shares rose about 1.6% in premarket trading.