McDonald’s Misses Earnings

Sluggish earnings this morning from McDonald’s. The fast food joint missed by four cents per share.

Overall, McDonald’s reported a second-quarter profit of $1.39 billion, or $1.40 a share, compared with $1.4 billion, or $1.38 a share, a year earlier. The per-share figure was higher, despite lower total earnings, because the company’s number of shares outstanding declined.

Revenue rose 1% to $7.18 billion.

Analysts polled by Thomson Reuters had expected earnings of $1.44 a share and revenue of $7.29 billion.

Sales at restaurants open more than a year were flat globally during the quarter. Consensus Metrix had estimated a 0.8% improvement.

Same-store sales in the U.S. fell 1.5%, missing estimates of a 0.3% decline. The company said the decline reflected negative traffic trends amid ongoing broad-based challenges, and said it plans to strengthen the overall customer experience to help return the segment to growth. Key areas of focus for this plan include strong service, enhanced marketing, and initiatives around the restaurant’s core, value and breakfast menus.

Posted by on July 22nd, 2014 at 10:58 am


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