Tuesday, January 27th-0.9°C
24779
23931

McDonald's profit slips as US sales continue to suffer

OAK BROOK, Ill. - McDonald's Corp. said its profit slipped in the second quarter as sales in the U.S. continued to flag.

The world's biggest hamburger chain has been struggling to boost sales in its flagship market amid intensifying competition, changing eating habits and the persistent financial struggles of its lower-income customers.

In the U.S., sales at established locations fell 1.5 per cent for the period fewer customers came into its restaurants. The company, based in Oak Brook, Illinois, hasn't managed to raise the figure since October.

Executives say they're working to improve basics such as operational speed and service, but that they don't expect performance to change significantly in the near term.

CEO Don Thompson said the company was moving with a sense of urgency to improve its performance but acknowledged the concerns expressed by analysts about the pace of change during a conference call.

"This is not the kind of thing that I would say I sleep well at night," Thompson said.

Globally, McDonald's said comparable sales were "relatively flat" for the period. A stronger performance in the unit encompassing Asia, the Middle East and Africa helped offset a decline in Europe. For July, however, McDonald's said it expects the figure to be negative.

For the quarter ended June 30, McDonald's earned $1.39 billion, or $1.40 per share. That was short of the $1.43 per share expected by analysts surveyed by Zacks Investment Research.

A year ago, the company earned $1.4 billion, or $1.38 per share.

Total revenue rose 1.4 per cent to $7.18 billion. That missed Wall Street forecasts for $7.29 billion.

Shares of McDonald's, which is based in Oak Brook, Illinois, were down 2 per cent at $95.19 in premarket trading.

Shares have increased 52 cents, or 0.5 per cent, to $97.55 since the beginning of the year, while the Standard & Poor's 500 index has climbed 6.8 per cent.

The Canadian Press


Read more Business News

24813


Recent Trending




Today's Market
S&P TSX14833.88+36.05
S&P CDNX676.77+2.38
DJIA17387.21-291.49
Nasdaq4681.498-90.266
S&P 5002029.55-27.54
CDN Dollar0.8044-0.0026
Gold1288.80+9.40
Oil47.27-0.68
Lumber312.50+0.80
Natural Gas2.916-0.065

 
Okanagan Companies
Pacific Safety0.12-0.02
Knighthawk0.010.00
QHR Technologies Inc1.43+0.04
Cantex0.0350.00
Anavex Life Sciences0.180.00
Metalex Ventures0.035-0.005
Russel Metals24.33-0.12
Copper Mountain Mining1.05-0.04
Colorado Resources0.155+0.02
ReliaBrand Inc0.0069+0.0009
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.21-0.03

 



24153

FEATURED Property
2175520#31 153 Salmon Arm Drive
2 bedrooms 2 baths
$199,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_



24709




Member of BC Press Council


24222