Generated

Chris Kempczinski reports McDonald's U.S. sales growth slowed as the company appoints Skye Anderson as new U.S. president

McDonald's reported its slowest U.S. sales growth in over a year on Tuesday, with same-store sales rising just 0.8% in the second quarter. CEO Chris Kempczinski stated that the company's aggressive push for value deals, including a new $3-and-under menu, led to overwhelmed restaurants and less efficient operations. The administration of the company noted that while global sales grew by 1.3%, the U.S. market faced pressure from high gas prices and cautious consumer spending among low-income households. To address these challenges, the company announced a leadership change, naming Skye Anderson as the new president of McDonald's USA. She replaces Joe Erlinger, who will serve as an adviser through early next year. The company plans to make marketing adjustments to re-energize high-frequency customers and increase spending on proven value offerings. Despite the slower domestic growth, McDonald's reported a strong profit of $2.36 billion, beating analyst expectations for earnings per share.

Sources