McDonald's (MCD) Q2 results and commentary highlighted solid global same-store-sales growth, supported by international performance that is expected to improve further in H2, while pressured US results reflect brand specific issues that should be addressed in the coming quarters, UBS Securities said in a note Wednesday.

US sales trends were hit by macro headwinds, inconsistent execution of value initiatives, operational inefficiencies resulting from a high number of sales initiatives during Q2, and less effective marketing campaigns, according to the note.

Although US same-store-sales growth pressure continued in July, the brokerage expects greater focus on improving operations, effective marketing, menu innovation, and digital/loyalty gains to support improvement into 2027, the note added.

The company noted poor execution of the everyday affordable price menu, reduced digital offers, and the removal of the Buy One, Add One for $1 feature weighed on Q2 performance, which contributed to two-thirds of the traffic underperformance relative to expectations, the brokerage noted.

The implementation of McDonald's NEXT growth strategy should support better sales trends through H2 and into 2027, the brokerage added.

UBS kept a buy rating on McDonald's with a price target of $340 per share.

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