What caused MCD's Q2 2024 earnings to fall short?

McDonald's Q2 2024 earnings fell short, with an actual EPS of $2.97 compared to the estimated EPS of $3.07, missing the mark by approximately 4.6%. The total revenue for the quarter was $6.49 billion, slightly below the estimated revenue of $6.61 billion.

1. **Plant-Based Burger Flop**: The unsuccessful launch of the McPlant burger in two American test markets, San Francisco, and Dallas, can be attributed to the decline in earnings. McDonald's USA President, Joe Erlinger, confirmed that the McPlant burger did not succeed in either market. This indicates a strategic misstep, as the company's entry into the plant-based burger market did not meet expectations.
2. **Chicken Category Focus**: McDonald's has been shifting focus to the chicken category, with the chicken category generating $25 billion in annual systemwide sales. This strategic shift might have impacted the performance of other product categories, including the plant-based McPlant burger, during the transition period.

In conclusion, McDonald's Q2 2024 earnings fell short due to the unsuccessful launch of the McPlant burger in key test markets and a strategic shift towards the chicken category. These factors combined to affect the company's revenue and earnings for the quarter.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|MCD|MCD.N|Mcdonald's|2023 Q3|13.962636876074999|6.692E9|169|
|MCD|MCD.N|Mcdonald's|2023 Q4|8.090778705812875|6.406E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q1|4.594777890810444|6.169E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q2|-0.10774203478528552|6.49E9|169|