McDonald’s misses estimates
Wall Street investors found McDonald’s stock tough to swallow this afternoon after the fast food giant missed quarterly earnings and revenue expectations.
Shares in the chain dropped three per cent in pre-market trading, as same-store sales in its home US market fell below expectations amid intense competition during the last three months.
The firm reported earnings per share of $2.11, missing estimates of $2.21, while revenue of $5.4bn missed forecasts of $5.5bn.
Global comparable sales rose ahead of expectations to 5.9 per cent year-on-year, marking the firm’s 17th consecutive quarter of growth.
The Chicago-based group said national and local promotions as well as menu price increases affected domestic same-store sales growth.
McDonald’s has faced pressure in recent months as some of its main rivals, including Burger King and KFC, have been ramping up marketing and upgrading menus.
The rise of plant-based alternatives has also taken a large portion of sales in the fast-food market, leading McDonald’s and its rivals to partner with start-ups looking to challenge the meat industry.