It might have been suffering from declining sales but McDonald’s global turnaround plan is taking effect says CEO Steve Easterbrook. The company has just released its second quarter results.

The strategy to turn the fast food giant into a “modern, progressive burger company” was released three months ago and Easterbrook believes the plan is already taking hold.

“While our second quarter results were disappointing, we are seeing early signs of momentum. I am confident that we will create the transformation necessary for McDonald’s,” he said.

Strong performance in Australia was offset in the Asia Pacific and Middle Eastern area by declining trade across Asia. However, Easterbrook is banking on the Chinese market to pick up and take the third quarter into more positive sales results.

In the US comparable sales dropped two percent in the quarter to June 30, and operating income fell six percent.

Kevin Ozan, chief financial officer, said “Our turnaround will be led by operational growth and supported by a comprehensive approach to financial management.”

McDonald’s is planning to refranchise about 3,500 restaurants by the end of 2018, he said.