Tuesday, May 5th7.5°C
25411
25998

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




Recent Trending




Today's Market
S&P TSX15173.94-193.53
S&P CDNX696.75-2.37
DJIA17928.20-142.20
Nasdaq4939.33-77.60
S&P 5002089.46-25.03
CDN Dollar0.8307+0.0021
Gold1194.50+1.30
Oil61.41+1.01
Lumber243.20+1.20
Natural Gas2.785+0.005

 
Okanagan Companies
Pacific Safety0.145+0.010
Knighthawk0.010.00
QHR Technologies Inc1.45-0.03
Cantex0.04+0.00
Anavex Life Sciences0.3415+0.0160
Metalex Ventures0.10+0.01
Russel Metals26.84-0.60
Copper Mountain Mining1.58-0.12
Colorado Resources0.10-0.00
ReliaBrand Inc0.0059+0.0019
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.195+0.010
Decisive Dividend Corporation1.85-0.15

 



26049

FEATURED Property
2082413#9 4800 Heritage Drive
3 bedrooms 2 baths
$189,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Not the lawsuit type

If I asked you whether you were the lawsuit type, chances are that your answer would be a resounding “NO”. Most people cringe at the thought of being involved in a lawsuit and if you don&r...


The rules are changing

In recent years, a number of countries, including England, Australia and the United States, have changed the regulatory framework that governs their financial institutions. Included have been changes ...


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...

_



26000

25911


Member of BC Press Council


25690