McDonald's reported that its second-quarter results fell short of analysts' expectations, missing both revenue and earnings estimates. The fast-food giant experienced same-store sales declines across all of its business units, the first company-wide same-store sales decline since the fourth quarter of 2020.

Key financials showed that McDonald's reported adjusted earnings per share of $2.97, missing estimates of $3.07. Revenue came in at $6.49 billion, missing estimates of $6.61 billion. Net income for the quarter was $2.02 billion and earnings per share were $2.80, down from $2.31 billion and $3.15 in the same quarter last year.

In terms of same-store sales performance, global same-store sales declined 1%, well below StreetAccount's forecast of 0.4% growth. In the U.S., same-store sales declined 0.7%, in contrast to the 10.3% growth reported a year ago, a decline largely attributed to lower traffic at U.S. restaurants.

In international markets, McDonald's same-store sales in its International Operating Markets segment, which includes countries such as France and Germany, declined 1.1 percent. And the International Development Franchise Markets segment, which includes China and Japan, reported a 1.3% decline in same-store sales. Ongoing boycotts in the Middle East and sales woes in China contributed to these declines.

On the consumer spending and competition front, McDonald's faces challenges as consumers cut back on food and beverage spending, particularly in the fast-food chain. Executives point to increased competition to attract customers in a weak consumer environment. To address this challenge, McDonald's is focusing on value offers, including a $5 prix fixe menu that was introduced at the end of June.

Based on the reported data and current challenges, the short-term outlook for McDonald's stock appears to be on the bearish side. The company's difficulty in sustaining growth in various markets, as well as reduced consumer spending on fast food, hint at possible headwinds for the stock.

However, McDonald's proactive approach to these challenges, such as the continuation of the $5 meal promotion, may help mitigate some of the negative impact. Investors should keep a close eye on the effectiveness of these strategies, as well as any signs of improvement in international markets, particularly China, which could have an impact on the company's performance.