McDonald's is about to report earnings. Here's what to expect

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McDonald's shares have fallen 4% this year, dragging its market value down to roughly $200 billion.

Beata Zawrzel | Nurphoto | Getty ImagesHere's what Wall Street analysts surveyed by Refinitiv are expecting:In the first half of 2022, the fast-food giant saw a slowdown in spending from lower-income consumers, and that trend will likely continue this quarter. Analysts surveyed by StreetAccount are projecting same-store sales growth of 5.8%, fueled largely by higher menu prices.

U.S. same-store sales are expected to rise 4%, according to StreetAccount estimates. McDonald's has been leaning into value offerings to appeal to customers whose budgets are under pressure from inflation. The burger chain may also be pulling in sales from diners who are trading down from fast-casual or full-service restaurants.

Investors also will have their eyes on McDonald's international operated markets segment. The IOM division includes European markets like France, Germany and the United Kingdom, all of which have been hit hard by higher energy costs. Additionally, the strong U.S. dollar means painful conversation rates for McDonald's sales, hitting markets with company-owned restaurants.

McDonald's shares have fallen 4% this year, dragging the company's market value down to roughly $200 billion. But it's outperformed the broader market. The

 

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U learning on the job means u winning

America has a lot of fat people. McDonald's is doing just fine. BTW I am fat myself so don't freak the hell out 😜

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