McDonald’s Beats Q2 Earnings Estimates

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The fast food giant is holding steady in the face of economic concerns.

In the face of global economic slowdown brought about by factors such as the ongoing Russian invasion of Ukraine and currency inflation, some businesses are definitely faring better than others. Perhaps unsurprisingly, fast food giant McDonald’s is one of the companies that’s doing reasonably well despite the unrest, even if they’re not doing quite as well as they would like.

For Q2, McDonald’s share value took a modest upturn, coming in at $2.55 adjusted against the $2.47 expected by Wall Street. The company attributes this to a rise in in-store sales and higher-value items and orders, though the threat of inflation has also raised the prices of their products in general. While share values were up, though, the company dropped slightly in the overall revenue department, bringing in $5.72 billion versus the expected $5.81 billion.

McDonald’s is expecting an inflation in food pricing around the world, doubly so in Europe as the Russian invasion of Ukraine continues. This year, McDonald’s ended their business with Russia entirely to punish them for the invasion, but as Russia is one of their biggest customers, this did cost them some of their overall revenue.

“We now face war in Europe, inflation is running at the highest levels in 40 years, interest rates are rising to levels we haven’t seen in years. All of this is contributing to weak consumer sentiment around the world and the possibility of a global recession,” McDonald’s CEO Chris Kempczinski told financial analysts today.

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