McDonald's Q2 results reveal strain on low-income US consumers

McDonald's shares rose slightly Tuesday after the company reported Q2 earnings per share of $3.38, beating expectations, though revenue of $7.1 billion grew 4% year-over-year but missed consensus estimates. Industry expert Mitch Roschelle said the sales miss indicates the low-income consumer is "exhausted," with domestic customer traffic declining due to prolonged inflation. McDonald's has relied on value deals and app discounts to retain price-sensitive customers, though this creates margin pressure requiring higher traffic to offset. Digital and app-based sales now account for over 40% of transactions, supported by AI-driven ordering and kitchen automation that lower labor costs. The stock remains down over 20% from its yearly high, with analysts maintaining a Moderate Buy rating and a $326 price target.