McDonald’s reported a lower-than-expected quarterly profit as comparable sales in its struggling US business fell for the third straight quarter and sales in Europe declined for the first time in four quarters.
McDonald’s shares fell 2.4 per cent in early trading, after the company also said global comparable sales were expected to fall in July.
US sales at restaurants open at least 13 months fell 1.5 per cent in the second quarter ended June 30th as the company battled resurgent rivals such as Wendy’s and Burger King.
The US business accounts for 30 per cent of the fast food chain’s overall revenue.
McDonald’s US comparable sales fell 3.5 per cent in June and 1 per cent in May.
Total sales rose 1 per cent to $7.18 billion, missing the average analyst estimate of $7.29 billion.
The world’s biggest restaurant chain by revenue said global comparable sales were “relatively flat.”
Comparable sales in Europe fell 1 per cent, while those in the Asia Pacific region, the Middle East and Africa rose 1.1 per cent combined.
McDonald’s reported net income of $1.39 billion, or $1.40 per share, in the quarter compared with $1.40 billion, or $1.38 per share, a year earlier.
Analysts on average had expected a profit of $1.44 per share.
McDonald’s shares were trading at $95.38 shortly after the opening on the New York Stock Exchange on Tuesday.
Reuters
