McDonald’s, the world’s largest fast food restaurant chain, saw its second-quarter net profit quadrupled, with revenue McDonald’s, the world’s largest fast food restaurant chain, saw its second-quarter net profit nearly fivefold, with revenue growing 57% and beating both market forecasts and the same pre-pandemic period of 2019. Revenue rose to $ 5.888 billion from $ 3.762 billion a year earlier. Excluding changes in currency exchange rates, the indicator increased by 49%. Net income in April-June was $ 2.219 billion, or $ 2.95 per share, compared to $ 483.8 million, or $ 0.65 per share, in the same period last year. Adjusted earnings rose to $ 2.37 per share from $ 0.66 from the market forecast of $ 2.11 per share on revenue of $ 5.584 billion.
We believe McDonald’s is well positioned to grow its market share due to the wide geographic diversification of its operations. The company strives to increase online sales and it must be admittedly doing well, thanks to high cash flows from franchising and complex digital transformation. In 2019, McDonald’s acquired Dynamic Yield customer personalization software and Apprente AI online order optimization system, so further integration of these projects will allow the company to stay ahead of competitors in expanding online operations in the United States. We believe that the launch of the digital-assisted My McDonald’s Rewards program will help the company increase revenues through a potentially loyal customer base of 22 million customers and an additional 12 million customers who already intend to participate in the program. The American catering system is back to operating at 70% of its pre-pandemic level. The remaining 30% of market participants must resume business by Labor Day. McDonald’s management notes that the reopening of restaurants after the lockdown has a positive impact on traffic and the company’s earnings.
McDonald’s is the world’s largest restaurant by sales with around 38 000 stores in 120 countries. McDonald’s reached a franchise mix of 93% at the end of 2019 and ultimately plans to settle around 95% franchised. We expect the U.S. business to contribute 43% of operating profits in 2020, International Operated Markets 53% and 4% from the rest of the world (International Developmental Licensed Markets).