McDonald's (MCD) reported weaker-than-expected quarterly revenue as fewer customers ate at its restaurants, partly due to severe winter weather in the U.S.
chain also reported a 0.1 percent decline in global sales at established
restaurants in the fourth quarter ended December 31. McDonald's shares fell nearly 1 percent in pre-market trading.
The world's biggest restaurant chain by revenue has posted five straight quarters of disappointing sales. McDonald's
signaled in October that weakness in its same-restaurant sales would
continue in the fourth quarter amid stiff competition and a lackluster
"As we begin 2014, global comparable sales for
the month of January are expected to be relatively flat," chief executive Don Thompson said in a statement on Thursday.
by Thompson in the roughly 18 months since he took the top job — such as
tweaking menus and changing management — have not borne fruit, raising
concern that McDonald's woes are due to internal rather than external
The company known for its crispy french fries and Big
Mac hamburgers reported net income of $1.40 billion, or $1.40 per share,
compared with $1.40 billion, or $1.38 per share, a year earlier.
Total revenue grew 2 percent to $7.09 billion. Analysts
on average were expecting the company to earn $1.39 per share on
revenue of $7.11 billion, according to Thomson Reuters I/B/E/S.Global
sales at restaurants open for at least 13 months fell 0.1 percent in
the quarter, due to "negative comparable guest counts."
expected a rise of 0.5 percent, according to privately held industry
estimates provider Consensus Metrix.Same-restaurant sales in the
U.S. fell 1.4 percent, while those in Europe rose 1 percent.
In Asia Pacific, Middle East and Africa (APMEA) it fell 2.4 percent.Analysts
polled by Consensus Metrix had expected a 0.2 percent decline in the U.S., a 1.1 percent rise in Europe and a 1.3 percent fall in
comparable sales from APMEA.
McDonald's shares were trading down
0.5 percent at $94.40 in premarket trading on Thursday. They closed at
$94.88 on the New York Stock Exchange on Wednesday.