\ A sign is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | beautiful pictures
McDonald’s is expected to report its second-quarter earnings before the bell on Tuesday.
Here’s what Wall Street analysts surveyed by Refinitiv are expecting:
- Earnings per share: $2.47 expected
- Revenue: $5.81 billion expected
Last quarter, McDonald’s was one of the few fast-food chains to warn that it was seeing some low-income consumers switch to cheaper meals. Investors will be watching to see if the trend worsens, especially in the company’s home market. Wall Street is expecting US like-store sales growth of 2.8%, according to StreetAccount estimates.
The company is also facing resistance from many franchisors in the US over proposed changes to the terms of ownership and scoring system for operators. The majority of franchisees surveyed by the National Association of Owners, an independent advocacy group for McDonald’s operators, support a vote of no confidence in McDonald’s CEO Chris Kempczinski and Joe Erlinger, the company’s President of the United States.
Outside the US, analysts are predicting strong sales growth as more international markets recover from the pandemic. But the war in Ukraine has led to fears that Europe could face a recession due to a spike in gas and food prices. McDonald’s said last quarter that European consumer behavior had not changed.
However, the company has faced a financial loss related to the conflict after temporarily closing restaurants in Ukraine and sold his business in Russia to a franchisee in Siberia. In May, the company said it expected to record a non-cash charge of between $1.2 billion and $1.4 billion related to its net investment in Russia and foreign currency losses.
Shares of McDonald’s have fallen more than 6% this year, bringing its market value down to $185.2 billion.
