McDonald’s profit nearly doubled in Q2: ‘we’re neutral on the stock’

McDonald’s Corp (NYSE: MCD) reported a near 100% increase in its second-quarter profit on Thursday. Its shares are up 2.0% at writing.

What drove strength in McDonald’s second quarter?

The fast-food chain attributed strength in its recently concluded quarter to price increases and positive guest count. On CNBC’s “Worldwide Exchange”, Bank of America analyst Sara Senatore said:

The multinational noted an 11.7% growth in its global same-store sales – well ahead of estimates. Overseas, much of it was related to Germany and the United Kingdom.

On Thursday, the burger giant also teased a spinoff restaurant it’s calling CosMc’s. McDonald’s stock is now up 13% versus the start of the year.

Notable figures in McDonald’s Q2 earnings print

• Earned $2.31 billion versus the year-ago $1.19 billion
• Per-share earnings also climbed from $1.60 to $3.15
• Adjusted EPS printed at $3.17 as per the press release
• Revenue jumped 14% year-on-year to $6.50 billion
• Consensus was $2.78 a share on $6.3 billion in revenue

McDonald’s also said today that it increased its market share in the second quarter as higher-income users traded down from more expensive dining locations. Still, BofA’s Senatore added: