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Slow burger sales cost McDonald’s U.S. chief his job

McDonald’s Corp. named a new US president to bring “focus and urgency” to its home market, after the fast-food chain posted its slowest growth in over a year.Sales at established US restaurants rose 0.8% in the second quarter, the company said Tuesday, its slowest growth since the start of 2025 and short of the average estimate of analysts polled by Bloomberg. While check sizes rose as customers bought on pricier items, this was partly offset by a decline in visits.The chain named long-time executive Skye Anderson as president of its US business, replacing Joe Erlinger, who is leaving the company and has held the role for about seven years. Anderson has worked at McDonald’s for nearly 30 years, and was most recently chief operating officer for the US.The results suggest that restaurants are going to have to work harder to keep up their growth as elevated gas and food prices, in part sparked by the war in Iran, eat into budgets. McDonald’s has stepped up efforts to spotlight cheaper meals while capitalizing on novelty and pop-culture moments to attract diners. McDonald’s shares have dropped 13% this year through Monday’s close, compared with an 11% gain for the S&P 500 Index.In international markets, comparable sales climbed roughly in line with market expectations. McDonald’s highlighted growth in Germany, Australia, the UK and Japan, while in China comparable sales were negative. In the U.S., the company expanded its value menu with a $4 breakfast meal and more options under $3. In France, McDonald’s pushed a €5 combo. Around the world, it promoted new drinks and limited-time meals tied to the hit show KPop Demon Hunters and the FIFA World Cup. “While our playbook is working around the world, we see an opportunity to raise the bar in the US and accelerate performance in our largest market,” Chief Executive Officer Chris Kempczinski said in a statement Tuesday.The burger chain is embarking on a multiyear plan to become more than just a fast, cheap meal, with the aim of being the first choice for family outings and other occasions. To achieve this, it’s preparing to offer higher-quality food, including hand-breaded chicken, and change restaurant designs to feel more open and playful. McDonald’s is also testing automation to boost efficiency, while using influencers, toys and tie-ins with other brands to bolster its online marketing. McDonald’s said in a filing that it’s targeting 50,000 restaurants worldwide in 2028. It had earlier said its goal was to reach that target by 2027, and said it was on track to hit that milestone in May.Sirtori writes for Bloomberg.

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