McDonald's sales are up after four disappointing quarters. What does this have to do with Minecraft?

Fast-food restaurant chain McDonald's beat analysts' expectations for international comparable sales growth in the second quarter. This is a turning point for McDonald's after sluggish performance four quarters in a row, and helped the company to achieve such results bets on specials based on the movie Minecraft, the return to the menu of the popular roll Snack Wrap and other promotions. Some analysts note that McDonald's has chosen a successful strategy that will continue to help the restaurant chain stay ahead of the competition.

McDonald's global comparable sales (in establishments in operation for at least 13 months) in the second quarter of 2025 grew by 3.8% year over year - against analysts' forecast of 2.6%, the Financial Times reports. This is the highest growth rate in almost two years, the publication adds. International markets contributed the bulk of the growth, notes Bloomberg. In the U.S., where McDonald's has about 14,000 locations, comparable sales rose 2.5% after declining 0.7% in the first quarter - mainly due to an increase in the average check per customer. This was also better than Visible Alpha's forecast, the FT emphasizes.

McDonald's was able to achieve such results thanks to vivid marketing campaigns: the restaurant chain launched sets to coincide with the release of the Minecraft movie, a themed line with the popular Squishmallows plush toy series, and returned chicken strips to the U.S., while in the U.K. and France it began selling the Big Arch burger. McDonald's has also tried to appeal to more frugal customers - for example, by offering combo sets starting at $5. In July, the chain put $2.99 snack rolls back on the menu, causing a stir. The 500 locations in the U.S. will also begin testing new beverages, including iced coffee, this summer.

McDonald's total sales (including franchised and owned restaurants) grew 8% in the second quarter. Revenues totaled $6.8 billion - up 5% from the same period last year and better than the Visible Alpha consensus forecast ($6.7 billion). Net income rose 11% year-over-year to $2.25 billion and was also slightly above Wall Street expectations. Adjusted earnings came in at $3.19 per share, compared with consensus of $3.14, adds MarketWatch, citing FactSet data.

The second quarter was a watershed for McDonald's: it ended a year-long period of weak growth during which the chain was pressured by an E. coli outbreak, a boycott of U.S. brands in the Middle East and consumer anxiety amid Donald Trump's trade policies, Bloomberg notes.

In addition, McDonald's results also confirmed analysts' expectations of renewed growth in comparable sales thanks to the relaunch of iconic positions and marketing campaigns, Bloomberg writes. Citi analyst John Tower said the quarterly results indicate that McDonald's strategy is working and can sustainably outperform the market in terms of comparable sales. While competitors like Chipotle and Pizza Hut are struggling for consumer confidence, McDonald's is strengthening its position on the back of marketing campaigns and affordable new products.

"A $5 meal promotion and a premium beverage lineup aimed directly at Generation Z strike a balance between affordability and quality," said Zacks Investment Management portfolio manager Brian Mulberry (quoted by Bloomberg).

In trading on August 6, shares of McDonald's jumped by 2.7% to $307. That's their highest price in two months. With this increase, the company's market value is now up 5.6% since the start of 2025. By comparison, the main U.S. stock index S&P 500 for the same periodadded about 7%.  

Immediately after the report was published, UBS reiterated a "buy" recommendation for the company's securities, and left the target price at $350 - that's 17% higher than the close on August 5. At the same time, the majority of analysts, who assigned ratings to McDonald's securities, take a neutral position with a Hold recommendation: such advice 19 out of 38. Another 17 advise Buy (Buy and Overweight), and the remaining two advise Sell. The consensusWall Street target price of $328.1 suggests the company's stock is up nearly 10% from its Aug. 5 close.

This article was AI-translated and verified by a human editor