Tags: mcdonalds | earnings | profit | hamburgers

McDonald's Sales Miss Estimates, Warns of Flat October

Monday, 21 October 2013 08:16 AM

McDonald's Corp. reported quarterly revenue that missed analysts' estimates and warned that global comparable sales for October are expected to be relatively flat, sending its shares down 1.3 percent before the bell.

Sales at stores opened for at least 12 months rose 0.9 percent in the third quarter, missing analysts' expectations of a 1 percent rise, according to Consensus Metrix.

A recent survey from Goldman Sachs suggested that McDonald's, which lately has lagged rivals in introducing popular new menu items, might be losing favor with diners.

In the United States, comparable sales increased 0.7 percent, but missed the average 0.9 percent rise analysts had expected. Comparable sales in its Asia/Pacific, Middle East and Africa business declined a steeper-than-expected 1.4 percent.

The company is fighting to accelerate sales in the United States after smaller rivals such as Wendy's Co. and Burger King Worldwide Inc. rolled out new menu items and limited-time offers.

McDonald's previously got a sales bump from new products such as oatmeal, sandwich wraps and lattes, but its more complicated menu has slowed service at the drive-thru.

The world's biggest restaurant chain by revenue said net income rose to $1.52 billion, or $1.52 per share, for the third quarter ended September 30, from $1.46 billion, or $1.43 per share, a year earlier.

Revenue rose 2.4 percent to $7.32 billion.

Analysts on average had expected earnings of $1.51 per share on revenue of $7.34 billion, according to Thomson Reuters I/B/E/S.

Restaurant margins at both franchised and company-operated stores slipped in the quarter.

© 2019 Thomson/Reuters. All rights reserved.

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McDonald's Corp. reported a 4.1 percent rise in quarterly profit, while global sales at established restaurants marginally missed analysts' expectations.
Monday, 21 October 2013 08:16 AM
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