McDonald’s might have its mojo back as Snack Wraps, value deals, and the Minecraft promotion deliver

McDonald’s (NYSE:MCD) traded higher on Wednesday after the fast-food giant gained traction with some of its value offerings and returned to positive comparable sales growth. Of note, the global comparable sales mark of 3.8% was the best for the company since Q4 of 2023.

Sales drivers for McDonald’s (NYSE:MCD) during Q2 included the Minecraft promotion, the launch of the Chicken Big Mac in Germany, the return of Snack Wraps in the U.S., the continued popularity of the $5 meal deal, and a Squishmallows themed limited-time offer.

On the tech front, McDonald’s (MCD) is partnering with Google to develop edge computing capabilities to improve restaurant reliability and enhance the customer experience.

On Wall Street, Citi analyst Jon Tower said the firm believes the quarterly improvement supports the narrative that McDonald’s (MCD) is shifting into a higher gear as it relates to product innovation, collaborations, and IP tie-ins, which could supplement value as a traffic driver and lead to balanced franchisee economics, accelerating unit growth, and sustained same-store sales outperformance

Evercore ISI analyst David Palmer highlighted that U.S. trends have accelerated in July after the introduction of Snack Wraps at a price of $2.99 nationally. Palmer reminded investors that McDonald’s (MCD) has a strong marketing calendar for the second half of the year and easing comparisons beginning in Q4.

Bernstein analyst Danilo Gargiulo also weighed in on the report. “While broadly in line in the US, MCD’s significant SSS beat in IOM was a welcome surprise, which could represent the turning point for international markets, despite (or because of) the continued macro volatility,” he wrote.

On Seeking Alpha, analyst Luca Socci was more cautious. He warned that the chain faces headwinds from cautious consumer spending, failed beverage ventures, and negative feedback on new menu items, impacting traffic and growth. “I think the recent post-earnings surge pushes McDonald’s Corporation stock into a territory that lacks any margin of safety. I rate, therefore, the stock as a hold and suggest being neutral,” advised Socci.

Shares of McDonald’s (MCD) were up 3.1% at 10:54 a.m. Notably, McDonald’s (MCD) has the fifth best share price return in the restaurant sector over the last six weeks out of the 55 publicly-traded stocks in the group.