McDonald's Q2: 14% Topline Growth, Earnings Beat, Comps Up 11.7% & More

McDonald's Corp MCD reported second-quarter FY23 sales growth of 13.6% year-on-year to $6.50 billion, beating the analyst consensus of $6.29 billion.

Global comparable sales rose 11.7%, reflecting strong double-digit growth across each segment. 

U.S. Comparable sales rose 10.3%, benefiting from strategic menu price increases and positive guest counts.

Sales by company-operated restaurants increased 18% Y/Y to $2.48 billion, while sales from franchised restaurants rose 12% to $3.93 billion.

Digital Systemwide sales in the top six markets were over $8 billion for the quarter, representing almost 40% of their Systemwide sales.

Total operating costs and expenses declined 15% at $3.39 billion. Operating income for the quarter rose 81% to $3.1 billion, with an operating margin of 47.7%.

Adjusted EPS of $3.17 beat the analyst consensus of $2.79.

"The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations," said President and CEO Chris Kempczinski.

Outlook: MCD sees FY23 operating margin of 45%; Capital expenditure of $2.2 billion - $2.4 billion.

Globally, the company expects to open about 1,900 restaurants.

Price Action: MCD shares are trading lower by 0.35% at $292.18 on the last check Thursday.