Don’t miss the latest developments in business and finance.

McDonald's Q2 profit falls, sales slow

On the back of a slowing global economy and the impact of a stronger dollar

Image
Reuters
Last Updated : Jan 20 2013 | 4:33 AM IST

McDonald's Corp reported lower-then-expected quarterly profit on Monday, hurt by a slowing global economy and the impact of a stronger dollar, and forecast growth in sales at a established restaurants would slow this month.

Shares in the world's largest fast-food chain operator fell 1.7 percent to $90.01 in premarket trading.

The results come just days after Chipotle Mexican Grill Inc surprised investors by saying the sluggish U.S. economy had cooled same-restaurant sales growth, adding to concerns about how much consumers were cutting back on discretionary spending.

McDonald's net income fell to $1.35 billion, or $1.32 per share, during the second quarter, from $1.41 billion, or $1.35 per share, a year earlier. The impact of the stronger dollar -- which lessens the value of sales overseas for U.S. companies -- cut 7 cents a share from earnings in the latest quarter, the company said.

Analysts, on average, looked for $1.37 a share, according to Thomson Reuters I/B/E/S.

Sales edged up to $6.92 billion from $6.91 billion a year earlier.

More From This Section

Sales at restaurants open at least 13 months were up 3.7 percent in the quarter, exceeding the 2.9 percent increase expected by analysts polled by Consensus Metrix.

The company said it expects same-restaurant sales to rise in July, but less than they did in the second quarter.

 

Also Read

First Published: Jul 23 2012 | 6:27 PM IST

Next Story