McDonald’s stock (NYSE: MCD) jumped nearly 4% on Wednesday after the company posted quarterly results that topped analyst expectations, offering a much-needed rebound after a shaky start to the year.
At one point in pre-market trading, the stock hit $310.52, wiping out recent losses and restoring investor confidence.
Earnings came in at $3.19 per share, up 7% from last year and slightly ahead of what Wall Street had been looking for. Revenue rose to $6.84 billion, a 5% increase, driven by stronger-than-expected same-store sales worldwide.
In the US, sales at established locations rose 2.5%, reversing an early-year dip. Overseas, sales grew 4%, with Japan emerging as a standout. It’s a sign that McDonald’s may be regaining momentum, even as broader consumer spending shows signs of strain.
Chris Kempczinski, McDonald’s Chairman and CEO, credited the company’s value-oriented offerings, standout marketing campaigns, and menu innovation—including the return of the $2.99 Chicken Snack Wrap and a creative Minecraft Movie promotion- for the strong quarter.
“Our 6% global systemwide sales growth this quarter is a testament to the power of compelling value, standout marketing, and menu innovation, proving again that when we stay focused on executing what matters most to our customers, we grow,” Kempczinski said in the earnings release.
Value-driven comeback
McDonald’s saw a solid boost this quarter thanks to its digital push: mobile orders, deliveries, and a growing loyalty program all played a role in keeping sales strong.
The comeback of popular value meals and some well-timed limited-edition items also hit the mark with price-sensitive customers, many of whom are still feeling the pinch from inflation and economic uncertainty in 2025.
Despite the rocky start to the year, McDonald’s is sticking with its full-year forecast. The company isn’t adjusting its guidance just yet, but hinted that upgrades could be on the table if its value-driven strategy continues to pay off.
With more wallet-friendly offers and new menu experiments in the pipeline, analysts and investors will be keeping a close eye on whether this momentum can hold.
McDonald’s stock: What analysts say
Wall Street reacted positively to McDonald’s earnings surprise. Morgan Stanley and UBS noted that Q2 trends represented an improvement over the prior quarters, highlighting the positive effects of new product launches and marketing stunts like the Minecraft tie-in.
UBS said that new menu innovations and value pricing “have been instrumental in driving renewed momentum,” while Morgan Stanley emphasized that middle and upper-income consumers have continued to dine out even as budget-conscious customers remain more cautious.
Jefferies analysts suggested that the July launch of new value offerings and the Chicken Snack Wrap may lead to “mid-single-digit” same-store sales growth in the coming months, potentially setting the stage for upward revisions to guidance.
Goldman Sachs recently upgraded McDonald’s to “Buy” on expectations that revitalized marketing and menu development could help the chain reclaim lost ground amid broader sector weakness, particularly in light of disappointing results from peers like Yum Brands.
The post McDonald’s stock surges after Q2 earnings beat estimates: here’s why analysts are bullish appeared first on Invezz
