McDonald’s Q2 2019 Earnings Highlights
July 26, 2019
The Cheese: Earnings Highlights
We’re celebrating 4 full years of quarterly comp sales growth
Global comp sales are up 6.5%
We had positive global comp guest counts
The Meat: Top 6 Moments from Q2
1. Our strategy is working
For the quarter, global comp sales increased 6.5%, which marks four full years of quarterly comp sales growth. This was complemented by positive global comp guest counts. Getting to the results wasn’t easy, and we need to continue to work hard to sustain performance. But, we remain confident in our strategies – customers are rewarding us for the investments we are making to offer them great-tasting food, a modern and hospitable environment, and unparalleled convenience.
2. Service times are speeding up in Drive Thru – and that means a better customer experience
Across our markets, we’re working to make meaningful improvements in Drive Thru service times. We’re getting better and leveraging the power of the system to provide an improved experience globally. And our customers agree that our hard work is worth it, with customer satisfaction scores up in most major markets.
3. In the U.S., our investments are paying off
In the U.S., the plan we built with franchisees is ambitious. In 2018, we deployed major initiatives, including a new value platform, Fresh Beef, delivery, EOTF modernization and the restructuring of U.S. field operations. In 2019, we’re executing on running better restaurants and optimizing the initiatives deployed last year – and we're seeing results. Average franchisee restaurant cash flow has grown eight consecutive months through June, fully overcoming the decline we saw in 2018.
4. High fives all around for the IOMs
All international operated markets had positive comp sales for the quarter, and nearly all of the markets also grew comp guest counts. That’s no easy feat. The broad-based strength is attributed to consistent execution against the Velocity Growth Plan and its accelerators – the U.K., France and Germany led the way, and smaller markets like Italy and Poland continue to be innovation hubs for best practices replicated at scale across the system.
5. We’re focusing on our food and that is working for us
Around the world, renewed focus on our core menu and developing delicious Limited Time Offerings is leading to increased customer satisfaction and sales growth. From the Bacon Roll breakfast sandwich in the U.K. to bacon on our classic QPC in the U.S., our food is moving the needle.
6. We’re innovating our digital space at a breakneck speed – and the results are tangible
Last quarter, we announced the acquisition of Dynamic Yield, a decision logic technology company. We launched the technology on digital menu boards in multiple markets in the U.S. and customers have responded to the point-of-sale suggestive selling by adding our World Famous French Fries, drinks and other favorites to their orders. We’re already seeing an increase in average check by improving our ability to offer customers what they are likely to want, with suggestions based on time of day, weather, and items already in customers’ orders. We will move fast to fully roll out this technology in the U.S. and Australia.
The Bun: The Bottom Line
We all want to be associated with companies, organizations and brands that engage and inspire us. Brands that are inclusive, fun, relevant and successful. Brands that strive to improve communities and societies at large. That’s where we’re headed as we continue to unlock the potential of the Velocity Growth Plan and its accelerators. And it’s why you’ll see us continue to focus on our innovation and technology pipelines.
We’re building a better McDonald’s through a culture of innovation focused on a better customer experience. A culture that strives to make the jobs of restaurant employees easier. And a culture that is focused on sustaining long-term growth. This is our mindset as we push ourselves to execute our Velocity Growth Plan and Accelerators with a strong sense of urgency, passion and commitment.