Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
McDonald’s posted better than expected earnings and revenue for the second quarter of 2025, signaling a rebound in U.S. sales thanks to promotional strategies and new menu offerings. However, concerns remain about the spending power of low-income consumers, a key demographic for the fast-food giant.
The company reported adjusted earnings of $3.19 per share, surpassing Wall Street’s expectation of $3.15, according to LSEG. Revenue rose 5% year-over-year to $6.84 billion, also topping forecasts.
Net income reached $2.25 billion, or $3.14 per share, up from $2.02 billion, or $2.80 per share, a year earlier. Same-store sales climbed 3.8%, marking McDonald’s biggest jump in nearly two years.
In the United States, same store sales grew by 2.5%, breaking a streak of two consecutive quarters of declines. CEO Chris Kempczinski attributed the positive performance to value driven strategies and high-profile promotions like the “Minecraft” movie meal deal and the debut of McCrispy Chicken Strips.
The return of Snack Wraps back on menus for the first time in nine years also helped boost traffic. The wraps, priced at $2.99, will remain available through the end of the year after a favorable franchisee vote. “We outperformed competitors in both same-store sales and comparable traffic,” Kempczinski said during the earnings call.
Despite the gains, executives remain cautious about broader consumer behavior. “Reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently than middle- and high-income consumers,” said Kempczinski. “This bifurcated consumer base is why we remain cautious about the overall near-term health of the U.S. consumer.”
McDonald’s is working closely with franchisees to offer more affordable core menu options beyond the summer’s $5 value meal and the newer Daily Double burger promotion.
Globally, McDonald’s performed even better. The international developmental licensed markets division, which includes Japan and China, reported 5.6% same-store sales growth. The international operated markets segment, including the United Kingdom, Australia, and Canada, posted 4% growth, fueled by rising value scores from consumers. “In our international markets, the competition isn't as intense as it is in the U.S.,” Kempczinski noted. “That makes it a bit easier to stand out and offer perceived value.”
Executives expressed optimism for the remainder of the year, citing easier year over year comparisons, particularly after last year’s E. coli outbreak, which impacted Q4 results. Shares of McDonald’s rose more than 2% in morning trading following the earnings release.
