McDonald’s has reported a 12% decrease in net income for the second quarter of 2024, with figures falling to $2.02bn from the $2.31bn recorded in the same quarter of the previous year.
This decline is mirrored in the company’s diluted earnings per share, which dropped by $0.35 to $2.80 – an 11% decrease.
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For the quarter ending 30 June 2024, the fast-food giant’s total revenues reached $6.49bn, a marginal decrease from the previous year’s $6.50bn.
The breakdown of revenue sources indicates a slight decrease in sales from company-owned restaurants, totalling $2.46bn, while franchised restaurant revenue saw a modest increase.
Other revenues, comprising ancillary income sources, experienced a notable rise of 16%, amounting to $89m.
Operating costs and expenses showed mixed results, with a decrease in expenses for company-owned restaurants and an increase in occupancy expenses for franchised restaurants.
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By GlobalDataThe company’s operating income for the quarter also saw a decline, falling 6% to $2.92bn.
For the first half of 2024, McDonald’s reported an increase in total revenues and a stable operating income, despite a 4% drop in net income compared to the same period in 2023.
For the six months ending 30 June 2024, total revenues were $12.66bn, a 2% increase from the previous year.
Operating costs and expenses rose by 4%, yet operating income showed resilience with a slight increase.
The net income for the first half of the year was $3.95bn, with diluted earnings per share decreasing by 2%.
McDonald’s president and CEO Chris Kempczinski said: “We are confident that Accelerating the Arches is the right playbook for our business and as consumers are more discriminating with their spend, we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers like chicken and loyalty.”
