McDonald’s (MCD) Mascot Grimace has brought a smile to the company as it helped in boosting earnings and revenue of the food and beverage giant in the U.S. McDonald’s posted its second quarter results on Thursday and both earnings and revenues beat analysts’ estimates. The Grimace Birthday Meal drove customers to its restaurants in the U.S. The second quarter also reported an increase in same-store sales. Shares remained flat in morning trading.
According to a survey of Wall Street analysts by Refinitiv, the earnings per share was expected to be $2.79 but McDonald’s reported adjusted earnings of $3.17 per share. The estimated revenue was $6.27 billion while the reported revenue for the second quarter was higher at $6.5 billion.
McDonald’s also reported an increase in second quarter net income year on year. In the second quarter of last year McDonald’s reported a net income of $1.19 billion or $1.60 per share while this year, it reported a net income of $2.31 billion or $3.15 per share.
McDonald’s same-store global sales rose to 11.7 percent while Street Account had estimated it at 9.2 percent. Same-store sales in all three divisions were in double digits. The same-store sales in its largest market, the U.S. was also in double digits at 10.3 percent and the number of visitors to its national location was higher; for the fourth consecutive quarter.
McDonald’s said that visits to its stores increased in the final weeks of the quarter after the trend of its Grimace Birthday Meal. The viral trend that includes a social media friendly purple milkshake brought back nostalgia for the McDonald land mascot and topped sales.
McDonald’s also said that there was a decrease in order size by consumers who earned less than $45,000 but this was offset by the large number of consumers who visited its restaurants or ordered from its menus.
McDonald’s also posted strong results from international markets and mentioned a launch of a spinoff brand called CosMc’s, which would be a small-format restaurant combining uniqueness as well as “the DNA of McDonald’s.” The food and beverage giant said that it would share additional details about the venture in December during its investor’s day.
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