McDonald’s Corp (NYSE:MCD) stock fell 0.44% (As on August 7, 11:17:01 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY25. At company-operated restaurants, sales were $2.5 billion, flat year over year. Sales at franchise-operated restaurants amounted to $4.2 billion, which increased 7% year over year. Moreover, other revenues rose 92% year over year to $172 million. In the quarter global comps rose 3.8% against 1% decline in the prior-year quarter, versus the analyst estimate was a 2.4% increase year over year. In the second quarter, McDonald’s total operating costs and expenses were $3.6 billion, up 1% year over year. Operating income rose 11% year over year to $3.2 billion. Net income totaled $2.3 billion, up 11% year over year.

Moreover, in United States during the second quarter, segmental comps rose 2.5% against a 0.7% decline registered in the prior-year quarter. The company’s comparable sales for the quarter were aided by positive check growth. McDonald’s said that while lower-income consumers are getting fast food less often, higher- and middle-income consumers are coming more, a trend the company sees continuing. Lower-income consumers are grappling with wages that aren’t keeping up with cost increases, anxiety around employment and negative sentiments likely linked to tariffs, Kempczinski said. As a result, they are eating at home more often, particularly at breakfast. McDonald’s said same-store sales grew across its international markets, led by Japan. Marketing and menu innovation helped increase sales. International Operated Markets’ segmental comps jumped 4% against a decline of 1.1% in the year-ago quarter.

MCD in the second quarter of FY25 has reported the adjusted earnings per share of $3.19, beating the analysts’ estimates for the adjusted earnings per share of $3.15, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $6.84 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $6.71 billion. Systemwide sales increased 8% (6% in constant currencies). Systemwide sales to loyalty members across 60 loyalty markets were approximately $33 billion for the trailing twelvemonth period and approximately $9 billion for the quarter

The Chicago-based company continues to expect to open roughly 2,200 restaurants this year, and said tariffs will slightly weigh on profits in company-owned restaurants this year. McDonald’s also plans to court younger consumers with new cold beverages in around 500 restaurants starting in September.