09:02 AM EDT, 07/29/2024 (MT Newswires) -- McDonald's (MCD) reported second-quarter earnings and revenue below market estimates, while same-store sales declined across every segment amid cautious consumer spending and lower restaurant traffic in major markets.

The fast-food heavyweight's adjusted earnings fell to $2.97 per share for the June quarter from $3.17 the year before, trailing the Capital IQ-polled consensus of $3.07. Revenue ticked down to $6.49 billion from nearly $6.5 billion, missing the Street's view for $6.63 billion.

Comparable sales on a global basis decreased 1%, reversing from a roughly 12% jump in the prior-year quarter, below the 0.6% increase modeled by analysts.

"Beginning last year, we warned of a more discriminating consumer, particularly among lower-income households," Chief Executive Chris Kempczinski said during an earnings call Monday, according to a Capital IQ transcript. "And as this year progressed, those pressures have deepened and broadened."

In the US, same-store sales were down 0.7% due to negative comparable guest counts, partially offset by menu price hikes, according to the company. Comparable sales in international operated markets slipped 1.1%, driven by France. Same-store sales in international developmental licensed markets dropped 1.3%, as the impact from the Israel-Gaza war and declines in China more than offset gains in Japan and Latin America.

McDonald's incurred a pretax restructuring charge of $0.06 per share during the quarter, mainly related to its internal efforts to modernize ways of working, as well as a pretax non-cash impairment charge of $0.11 a share related to the potential sale of the company's business in South Korea. Total operating costs and expenses widened to $3.57 billion from $3.39 billion year-over-year.

"We're executing with excellence, and our restaurant operations are an area of strength," Kempczinski said on the call. "We're flexing our investment muscle to accelerate new restaurant openings as we also build consumer restaurant and company technology platforms that will drive cost efficiencies and accelerate innovation."

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