McDONALD'S REPORTS SECOND QUARTER 2024 RESULTS

Core Insights - McDonald's reported consolidated revenues of nearly $6.5 billion for Q2 2024, reflecting a 1% increase in constant currencies compared to the prior year [1] - The company experienced a global comparable sales decrease of 1.0%, with declines across all segments, including a 0.7% decrease in the U.S. and a 1.1% decrease in International Operated Markets [1][3] - The CEO emphasized the importance of delivering reliable value and accelerating growth drivers such as chicken and loyalty programs amid changing consumer spending habits [1] Financial Performance - Consolidated revenues for Q2 2024 were $6,490 million, slightly down from $6,498 million in Q2 2023 [5] - Operating income decreased by 6% to $2,920 million, impacted by $97 million in pre-tax non-cash impairment charges and $57 million in restructuring charges [5][16] - Diluted earnings per share fell to $2.80, an 11% decrease from $3.15 in the same quarter last year [5][16] Comparable Sales Analysis - U.S. comparable sales decreased by 0.7%, while International Operated Markets and International Developmental Licensed Markets saw declines of 1.1% and 1.3%, respectively [3][4] - The negative comparable sales in the U.S. were attributed to lower guest counts, although average check growth helped mitigate the decline [3] - International performance was affected by various factors, including negative sales in France and the impact of geopolitical events in the Middle East and China [3][4] Systemwide Sales and Loyalty - Systemwide sales to loyalty members exceeded $26 billion over the trailing twelve months, with approximately $7 billion for the quarter [1] - The loyalty program's performance is seen as a key driver for future growth, as the company aims to enhance customer engagement and retention [1][10] Operational Metrics - The company reported a net income of $2,022 million for Q2 2024, down 12% from $2,310 million in Q2 2023 [5][16] - The effective tax rate increased, contributing to the decline in net income, alongside higher interest expenses [5][16] - Free cash flow metrics are being monitored to evaluate the company's ability to convert profits into cash resources for shareholder value enhancement [11]