McDonald's Same-Store Sales Soft in U.S., but Still Strong Globally
January 23 2017 - 9:04AM
Dow Jones News
By Joshua Jamerson
McDonald's Corp. posted better-than-expected global same-store
sales in the latest quarter, but its results in the U.S. declined
as enthusiasm for its all-day breakfast options leveled off.
For the quarter that ended in December, the burger chain's
global comparable sales increased 2.7%, well above the 1.4%
increase anticipated by analysts in a Consensus Metrix survey.
In the U.S., comparable sales fell 1.3%; the company blamed a
challenging comparison to the prior-year launch of its all-day
breakfast service. The report Monday comes as investors are hungry
for menu news, since McDonald's hasn't come out with any
blockbuster products in a while.
For the first three months of the year, Chief Executive Steve
Easterbrook said the company will again face a difficult comparison
to the prior-year quarter, which he said benefited from a leap
year, good weather and momentum from all-day breakfast in the
U.S.
Over all, McDonald's reported net income of $1.19 billion,
compared with $1.21 billion in the year-ago quarter. On a per-share
basis, earnings rose to $1.44 from $1.31, thanks to a lower
outstanding share count.
Revenue fell 5% to $6.03 billion, which the company said was due
to refranchising. Analysts polled by Thomson Reuters had expected
$1.41 a share on $5.99 billion in revenue.
Shares fell 0.5% to $121.19 in premarket trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 23, 2017 08:49 ET (13:49 GMT)
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