McDonald's Posts Lackluster Same-Store Sales Growth
July 26 2016 - 9:20AM
Dow Jones News
McDonald's Corp. posted weaker-than-expected same-store sales in
its latest quarter, a sign that the boost from its all-day
breakfast offerings may be receding.
Shares fell 3% to $123.6 in premarket trading.
Sales at existing stores rose 3.1% in the period, just below the
consensus estimate of 3.6% growth in a survey of analysts by
Consensus Metrix. But in the U.S., comparable sales rose 1.8% in
the U.S., far below the 3.2% growth anticipated by analysts.
All-day breakfast continued to power domestic sales, but the
company said it faced "softening industry growth" in the period.
International sales rose 2.6%, meeting analysts' views.
Since taking the helm last March, Chief Executive Steve
Easterbrook has moved to bolster the company's sales by paring down
its menu, offering more transparency about how its food is made and
launching all-day breakfast at many of its domestic
restaurants.
The CEO has previously said the initial boost from the expanded
breakfast menu hours would eventually moderate, and investors are
eager to hear what else McDonald's has up its sleeve.
Over all for the three months ended in June, McDonald's reported
a profit of $1.09 billion, or $1.25 a share, compared with $1.2
billion, or $1.26 cents, a year earlier. Excluding items, the
company earned $1.45 a share. Analysts had projected $1.38 in
per-share earnings.
Revenue fell 4% to $6.27 billion, meeting analysts'
expectations.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 26, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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