ICYMI – McDonald’s Q2 2025 earnings: sturdy outcomes from budget-conscious shoppers

• Q2 EPS:

  • Reported EPS: $three.14

  • Adjusted EPS (ex-items): $three.19 (vs. $three.14 est.)

• Income:

  • $6.84B (vs. ~$6.7B est.)

  • +5% y/y

• International Comparable Gross sales:

  • +three.eight% (vs. +2.6% est.)

• U.S. Identical-Retailer Gross sales:

  • +2.5% (vs. -Zero.7% y/y)

• Revenue:

  • Internet revenue rose 11% y/y to $2.25B

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Other than the corporate information, there’s a macro angle to this. That is going to sound like a price judgment, however its not – simply economics.

An inferior good is an financial time period for a product whose demand will increase when shopper incomes fall. In contrast to regular items, which see decreased demand throughout financial downturns, inferior items turn out to be extra widespread as folks search for cheaper alternate options. Quick meals, like McDonald’s, is commonly cited for example—when budgets tighten, shoppers might commerce down from pricier eating choices, boosting gross sales at value-oriented chains.

On this occasion I am questioning if McDonald’s benefitted from its positioning as an inferior good, attracting cost-conscious diners amid ongoing financial unease. Administration famous continued stress on lower-income shoppers, regardless of wage features, with actual incomes falling and monetary anxiousness rising.

This text was written by Aaron Cutchburt at investinglive.com.