McDonald’s, the world’s largest restaurant chain, posted fourth-quarter profit that was little changed from a year earlier as US same-store sales fell amid shaky consumer confidence and increased competition. Net income was about $1.4 billion, or $1.40 a share, compared with $1.4 billion, or $1.38, a year earlier, the Illinois-based company said in a statement.

Analysts estimated $1.39 a share, the average of 27 projections compiled by Bloomberg.

Chief executive Don Thompson has been advertising the chain’s new Dollar Menu and More, which has items priced at $1 and $2, to lure Americans amid falling consumer confidence. The company, which in 2012 got 32 per cent of revenue from the US, also is facing heightened competition as Burger King Worldwide and Wendy’s sell more lower-priced sandwiches.

“They need a real improvement in the overall economy, where we get a little bit of inflation and incomes start to rise and they feel like they can raise prices a little bit,” Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in a phone interview.

Sales at McDonald’s US locations open at least 13 months fell 1.4 per cent in the quarter. Analysts estimated a drop of 0.2 per cent, the average of 23 estimates from Consensus Metrix.

January comparable-store sales are expected to be unchanged globally, Mr Thompson said in the statement.

Burger King in November announced it was selling a new barbecue rib sandwich for $1, while Wendy’s last month started selling 99-cent spicy chipotle burgers and chicken sandwiches. McDonald’s last year didn’t advertise its McRib sandwich nationally, leaving the decision up to franchisees. Instead, it touted new chicken wings, McWraps and coffee flavors. “It’s just going to be tough because the competitors have gotten a lot better,” Sara Senatore, a New York-based analyst at Sanford C Bernstein said in an interview. “It would be great if they could come up with a killer product.”

-Bloomberg