McDonald’s reported slower-than-expected growth in its U.S. same-store sales for the second quarter, attributing the shortfall to execution challenges in promoting value offerings. The company announced leadership changes in its U.S. operations as it seeks to strengthen its performance in a competitive market.

For the quarter ending June 30, McDonald’s U.S. same-store sales increased by 0.8%, falling short of analysts’ projections of a 1.06% rise and trailing the previous year’s growth rate of 2.5%. Chief Executive Officer Chris Kempczinski identified lapses in marketing and promotional efforts as key factors behind the muted results. Specifically, he pointed to weaker promotion of value deals and a reduction in digital offers, which contributed to a decline in visits from the brand’s loyal customer base, particularly among lower-income consumers who have been cutting back on restaurant spending.

Kempczinski emphasized that the company’s challenges were not due to strategic missteps but rather a failure to execute effectively during the quarter. “We don’t have a strategy problem, we simply didn’t execute at the level we needed to in the second quarter,” he said, underscoring McDonald’s commitment to addressing these issues going forward.

In conjunction with the financial update, McDonald’s announced a leadership change in its U.S. business, naming Skye Anderson as the new head of the division. Anderson, an internal candidate with extensive operational and international experience, will succeed Joe Erlinger. The company is placing confidence in Anderson’s background to help reinvigorate growth and improve execution across the U.S. market.

The adjustments come as McDonald’s aims to adapt to shifting consumer behavior amid economic pressures affecting discretionary spending. The firm’s focus on value propositions has been central to maintaining traffic, but the recent quarter’s results highlight obstacles in fully capitalizing on that strategy.

Investors and market watchers will be closely monitoring McDonald’s next steps as it seeks to regain momentum in the U.S., its largest market, while continuing to navigate a complex and evolving fast-food landscape.