McDonalds, the world's largest fast food chain, warned it expects earnings per share of 34-35 cents in the second quarter, below the previous estimate of 38 cents.
At constant exchange rates McDonald's said it forecasts EPS of 36-37 cents in the second quarter.
The company cited consumer concerns about European beef supply, higher costs, weak economies and difficult comparisons caused by strong marketing promotions last year for the profit warning.
McDonald's chairman and chief executive Mr Jack Greenberg said: "The effect of consumer concerns regarding the European beef supply is persisting longer than we anticipated and our business growth in other geographic areas is not expected to be enough to offset this effect."
For the second half the company foresees EPS growth in the "mid-single" digits at constant exchange rates due to an anticipated "significant improvement" in its core businesses.
AFP