McDonald’s developing spinoff concept; Q2 earnings top Street
McDonald’s reported second-quarter earnings and revenue that topped analysts’ estimates amid strong global sales and a themed birthday meal combo that helped drive U.S. traffic.
During its earnings call, the fast-food giant revealed that it plans to test a spinoff restaurant concept, called CosMc’s, in a small number of locations next year.
“CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said on the call, reported CNBC.
The new restaurant concept is named for a former mascot — a fun-loving and wacky alien from outer space who craved McDonald’s food — who appeared in the chain’s advertisements in the late 1980s and early 1990s, the report said. CosMc appeared in both television and print ads.
McDonald’s reported net income of $2.31 billion, or $3.15 per share, for the quarter ended June 30, up from $1.19 billion, or $1.60 per share, in the year-ago period. Excluding charges and other items, McDonald’s earned $3.17 per share.
Net sales climbed 14% to $6.5 billion for the quarter ended June 30. Global same-store sales increased 11.7%, topping estimates of 9.2%.
Same-store sales in the U.S. rose 10.3% and were 11.9% in international operated markets. The company said the United Kingdom and Germany drove the division’s strong performance.
McDonald’s international developmental licensed markets saw 14% same-store sales growth, fueled by higher demand in China.
“Our second quarter results reflect consistently strong execution of our Accelerating the Arches strategy, with global comparable sales growth of 11.7% and double-digit comparable sales growth across each of our segments," said Kempczinski. "The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations. While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow."
McDonald's has more than 40,000 locations in over 100 countries.