⚡ Get All Content for 20% Off ⚡

McDonald's Turnaround Plan Hasn't Led to Positive Earnings Yet The fast-food giant has a ways to go until it's the 'modern, progressive burger company' of its dreams.

By Kate Taylor

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

McDonald's turnaround plan is in effect. Now it's time to start answering the big question: Will it work?

After seven straight quarters of declines, the burger chain says it expects positive global comparative sales in the third quarter due both to its organizational changes and a predicted sales recovery in China following last year's supplier issues.

"We have made meaningful progress since announcing the initial steps of McDonald's turnaround plan in early May," McDonald's CEO Steve Easterbrook said in a statement released Thursday. "While our second quarter results were disappointing, we are seeing early signs of momentum."

Related: McDonald's Is Doing Something It Hasn't Done in 40 Years

In the U.S., featured products and promotions failed to lead to positive guest traffic during the second quarter. The company saw a worse-than-expected 2 percent decline in U.S. same-store sales, and a 0.7 percent drop globally.

The company's quarterly profit fell to $1.2 billion from $1.39 billion a year earlier, and revenue fell 10 percent, but both results topped analysts' expectations.

Going forward, McDonald's says it plans to repair sales in the U.S. in part through continuing to test all-day breakfast in select markets and increase localized offerings, such as the recent feature of the McLobster in the Boston area. Simplification, both of menu offerings and employee procedures, is still a key part of the turnaround plan. The company is also focused on efforts that are, in the words of Easterbrook, "not headline grabbing moves," such as better marketing support and enhanced customer service.

Related: The Secret Menu Items at Your Favorite Restaurant Chains

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.