McDonald’s global comparable sales increased nearly 10% in the second quarter, but the net income was down 46%
McDonald’s Corporation announced results for the second quarter 2022 that came above estimates as the company managed to deliver nearly 10% increase in global sales compared to second quarter 2022, by focusing on customers and crew, enabled by a rapidly growing digital capability.
Second quarter financial performance:
• Global comparable sales increased 9.7%, reflecting positive comparable sales across all segments
• U.S. increased 3.7%
• International Operated Markets segment increased 13.0%
• International Developmental Licensed Markets segment increased 16.0%
• Consolidated revenues decreased 3%
• Systemwide sales increased 4%
Consolidated operating income decreased 36%. Results included $1.2 billion of charges related to the sale of the Company’s business in Russia and a gain of $271 million related to the Company’s sale of its Dynamic Yield business.
Excluding these current year net charges and prior year net gains of $98 million, primarily related to the sale of McDonald’s Japan stock, consolidated operating income was flat.
Diluted earnings per share was $1.60, a decrease of 46%. Excluding the net charges described above of $0.90 per share and nonoperating expense of $0.05 per share related to the settlement of a tax audit in France, diluted earnings per share for the quarter was $2.55, an increase of 8%, when also excluding prior year net pre-tax gains of $0.10 per share and income tax benefits of $0.48 per share.
In U.S., comparable sales growth was driven by strategic menu price increases and value offerings across both everyday menu and
International Operated Markets saw strong operating performance drove positive comparable sales across the segment, led by very
strong comparable sales in France and Germany.
The quarter reflected strong comparable sales driven by Brazil and Japan, partly offset by negative comparable sales in China due to continued COVID-19 resurgences and related government restrictions.
Results for the quarter and six months reflected strong operating performance driven by higher sales-driven Franchised margins.
Company-operated margins were negatively impacted for both periods by the restaurant closures in Russia and Ukraine, as well as by
inflationary pressures on labor and commodities. The quarter and six months also reflected an income tax benefit associated with global tax