EmailMcDonalds (MCD $88.79 -2.79) reported second quarter earnings of $1.32 per share, $0.06 worse than the Capital IQ consensus of $1.38, FX had a approximately $0.07 impact, while revenues rose 0.2% year/year to $6.92 billion versus the $6.96 billion consensus. Global comparable sales increased 3.7%, with positive comparable sales in each geographic segment McDonald's U.S. generated comparable sales growth of 3.6% for the quarter leveraging the strength of its everyday value offerings, menu variety, convenience, and the enhanced customer experience due to reimaged restaurants. Top-line performance benefited from the ongoing popularity of McDonald's classic core favorites and new additions to the McCafe beverage line-up, despite broad competitive activity. Operating income for the quarter increased 2%.
For the quarter, Europe delivered comparable sales growth of 3.8% while operating income decreased 3% (increased 8% in constant currencies). Ongoing strength in the U.K. and Russia led the segment's comparable sales and constant currency operating income growth, with France and Germany also contributing. Reinvigorated everyday affordability options, ongoing premium product innovation and restaurant remaking were key sales drivers for the quarter. Asia/Pacific, Middle East and Africa (APMEA) posted a modest comparable sales increase of 0.9% for the quarter. Solid performance in Australia and China, partly driven by positive consumer response to value platforms, was offset by weakness in Japan. For the quarter, APMEA's operating income decreased 2% (increased 1% in constant currencies).
