McDonald's Corp. (MCD) second-quarter was held back on weak June sales, even as the company met earnings expectations with an 8% decline due to unfavorable exchange rates and a prior-year sales gain.

Fast-food demand has been slowing in the U.S. on rising unemployment and falling grocery-store prices that make eating at home a good deal. McDonald's, while gaining market share from competitors like Burger King Holdings Inc. (BKC) and Wendy's/Arby's Group Inc. (WEN), felt the pinch too, with its June global same-store sales increase of 2.6%, including a 1.8% rise in the U.S., below expectations.

McDonald's shares fell $2.37, or 4%, in recent trading, to $56.45, as some analysts suggested that the fast-food giant, which has called itself recession resistant, had succumbed to the global slowdown.

"It's no question that the current economic environment is challenging and we're not completely immune from its effects," McDonald's Chief Financial Officer Peter Bensen said on Thursday's earnings call.

McDonald's remained confident in its full-year outlook, where negative effect from foreign exchange abates and commodity costs come down.

The world's largest hamburger chain added that it expects July sales to be similar to or better than June figures. Investors have come to count on McDonald's to deliver strong sales, and the current environment has caused diners to seek lower prices when they do go out to eat, leaving McDonald's in a good position with its low prices.

McDonald's has notably made splashes by rolling out higher-priced products in the recent quarter, most notably promoting its premium coffee products heavily. It also introduced its $4 Angus Burger in the quarter, which it plans to start advertising in the coming months. Such items may have drawn some attention from its value products, leading to weaker sales.

"McCafe is a long-term home run for them, but given the high price of some items, it might not provide that sales jolt," Telsey Advisory Group restaurant analyst Tom Forte said. "Given the prolonged recession, some of these higher items may not be ideal."

As McDonald's backed the McCafe launch, it says it also took advantage of lower advertising rates to broadcast more commercials and post more outdoor billboards to support core and value products, McDonald's President and Chief Operating Officer Ralph Alvarez said. That's helping McDonald's stay ahead of its competitors in a declining category.

"We've had a slight uptick in guest count, which we believe, in a market share battle, that is the battle," he said. With hot competition among the burger chains and consumer sensitivity to prices, McDonald's says it's not planning to raise prices this year.

McCafe sales are meeting or exceeding expectations, Alvarez said, with coffee now making up 5% of total sales compared with 2% two years ago. The company plans the second step of its beverage platform, which includes fruit smoothies, to launch later this year.

McDonald's second-quarter profit came in at $1.09 billion or 98 cents a share, including a one-cent benefit from an asset sale, down from $1.19 billion, or 1.04 a share, a year earlier. Revenue decreased 7% to $5.65 billion.

Analysts had been looking for earnings of 97 cents a share on $5.72 billion in sales.

For the quarter, McDonald's posted global same-store sales rising 4.8%, with a 3.5% gain in the U.S. on sales of classics like the Big Mac as well as value drinks like $1 sweet tea.

Same-store sales rose 6.9% in Europe, with strong results in the U.K., France and Russia. Same-store sales in the Asia/Pacific, Middle East and Africa region rose 4.4%, bolstered by strength in Australia though China remained negative.

-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; paul.ziobro@dowjones.com

(Tess Stynes contributed to this report.)