McDonald’s reported a 5 per cent drop in first-quarter earnings, missing expectations as harsh winter weather and a slow economic recovery kept US customers at home.
The Illinois-based company reported earnings of $1.2 billion (€870 million), or $1.21 a diluted share, in the three months to March, compared to $1.27 billion, or $1.26 a share, during the same period last year. Sales grew 1 per cent, from $6.61 billion to $6.7 billion.
Analysts had expected earnings of $1.24 a share on $6.73 billion in sales.
McDonald’s, along with other fast-food chains, has struggled for more than a year as its target low-income consumer has yet to fully recover from the global financial crisis. The world’s largest restaurant company introduced new items to drive traffic last year, but analysts said the complicated menu confused consumers and slowed down service.
US same-store sales have fallen for the past five months, and were down 1.7 per cent for the quarter compared to the same period last year. Overall, global same-store sales rose 0.5 per cent, boosted by a 1.4 per cent increase in Europe. Sales in the Asia, Middle East and Africa market rose 0.8 per cent. – Copyright The Fina- ncial Times Limited 2014
