McDonald's Profit Falls 8 Percent
U.S. fast-food chain McDonald's on Thursday reported second-quarter net profit of 1.09 billion dollars, down 8.0 percent from a year ago as a stronger dollar weighed on revenue.
Revenue fell 7.0 percent to 5.64 billion dollars in April-June period, the global restaurant chain said.
Earnings per share of 98 cents were in line with the average analyst forecast of 97 cents, but revenue fell short of market expectations of 5.72 billion dollars.
The Oak Brook, Illinois-based company said that operating income in the United States rose 5.0 percent and its market share grew thanks to classic menu items like the Big Mac and innovations such as specialty coffees aimed at competing with coffee chain Starbucks.
"In constant currencies, the company posted higher revenues, operating income and earnings per share compared with the prior year," McDonald's said.
On that foreign exchange basis, operating income jumped 10.0 percent in Europe and 34 percent in Asia/Pacific, Middle East and Africa.
"I am pleased with McDonald's results and remain confident in our outlook for the year," said chief executive Jim Skinner.
"As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June."