McDonald’s International | Q2 2022

Global comparable sales increased nearly 10%

McDonald's reports strong growth across all segments. Since the company has shut down its operations in Russia and afterwards sold to a former Russian franchisee, figures are excluded from the calculations in the 2nd quarter of 2022.
IMAGO / Zuma Wire
McDonald's reports strong growth across all segments. Since the company has shut down its operations in Russia and afterwards sold to a former Russian franchisee, figures are excluded from the calculations in the 2nd quarter of 2022.

McDonald's Corporation today announced results for the second quarter ended June 30, 2022. Global comparable sales increased 9.7%, reflecting positive comparable sales across all segments. Digital Systemwide sales in the company’s top six markets exceeded $6 billion for the quarter, representing nearly a third of their total Systemwide sales.

"The McDonald's System continues to demonstrate strength and resiliency," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "Our second quarter performance reflects outstanding execution against our Accelerating the Arches strategy. By focusing on our customers and crew, enabled by a rapidly growing digital capability, we delivered global comparable sales growth of nearly 10%. Nonetheless, the operating environment across the competitive landscape remains challenging. While we are planning for a wide range of scenarios, I am confident that our plans and people position McDonald's to weather this environment better than others."

Sales in the U.S. increased by 3.7%. Comparable sales growth was driven by strategic menu price increases and value offerings across both their everyday menu and digital offerings, the McDonald’s Corporation explains in a statement.

International Operated Markets segment increased by 13.0%. Strong operating performance drove positive comparable sales across the segment, led by very strong comparable sales in France and Germany.

International Developmental Licensed Markets segment increased by 16.0%. The quarter reflected strong comparable sales driven by Brazil and Japan, partly offset by negative comparable sales in China due to continued COVID-19 resurgences and related government restrictions, the statement continues.

For both International Operated Markets and Total comparable sales calculations for the second quarter 2022, restaurants in Russia were treated as permanently closed starting April 1, 2022 and therefore excluded from the calculations, and restaurants in Ukraine were treated as temporarily closed and therefore included in the calculations.

Consolidated operating income decreased 36% (30% in constant currencies). Results included $1.2 billion of charges related to the sale of the Company's business in Russia and a gain of $271 million related to the Company's sale of its Dynamic Yield business. Excluding these current year net charges and prior year net gains of $98 million, primarily related to the sale of McDonald's Japan stock, consolidated operating income was flat (increased 7% in constant currencies).

Results for the quarter and six months reflected strong operating performance driven by higher sales-driven Franchised margins. Company-operated margins were negatively impacted for both periods by the restaurant closures in Russia and Ukraine, as well as by inflationary pressures on labor and commodities. The quarter and six months also reflected an income tax benefit associated with global tax audit progression.

 

 

ABOUT McDONALD'S

McDonald's is the world's leading global foodservice retailer with nearly 40,000 locations in over 100 countries. Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent local business owners.

 

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