McDonald's falls short, warns of tough year

MIAMI, FL - JULY 23: A sign for a McDonald's restaurant sits in front of an American Flag July 23, 2012 in Miami, Florida. The company announced that 2nd quarter profit dropped 4.5 percent. (Photo by Joe Raedle/Getty Images) Joe Raedle

NEW YORK McDonald's Corp. (MCD) reported a second-quarter profit that fell shy of expectations and warned of a tough year ahead.

The world's biggest hamburger chain also said July sales are expected to be flat.

The company, based in Oak Brook, Illinois, says global sales edged up 1 percent at restaurants open at least a year in the quarter. The figure rose by the same amount in the U.S., where the company has been introducing new menu items such as chicken wraps and egg-white breakfast sandwiches

For the quarter, the company earned $1.4 billion, or $1.38 per share. That's up from $1.35 billion, or $1.32 per share, a year ago.

Earnings were short of the $1.40 analysts expected.

Revenue rose to $7.08 billion, in line with expectations.

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