McDonald’s Profit Beat Expectations. But Its CEO Is Still Unhappy With How Sales Grew: ‘We Simply Didn’t Execute’
CEO Chris Kempczinski blamed inconsistent execution and a pullback in digital deals. The chain also named a new head of its US business.
Wall Street loves McDonald’s. But its CEO isn’t celebrating with a Happy Meal. The chain earned $2.36 billion in the second quarter, beating Wall Street’s adjusted earnings estimate, but same-store sales in the U.S. grew only 0.8%, a steep drop from last year’s 2.5% increase, reports.
CEO Chris Kempczinski said the company’s strategy wasn’t the issue. “We simply didn’t execute at the level we needed to in the second quarter,” he told investors on the earnings call. He pointed to inconsistent restaurant operations, underperforming marketing and a pullback in digital offers that left customers buying less or skipping purchases altogether.
McDonald’s plans to relaunch national digital deals next week and send more personalized offers to loyal customers. The company also named Skye Anderson as the new president of McDonald’s USA, putting her in charge of turning the sales trend around.
