McDonald's December sales disappoint
McDonald's Corp reported weaker-than-expected December sales at established US and European restaurants as poor weather hurt demand, and said its food costs would rise in 2011.
January 25, 2011 / 09:43 IST
McDonald's Corp reported weaker-than-expected December sales at established US and European restaurants as poor weather hurt demand, and said its food costs would rise in 2011.
Shares of the world's largest hamburger chain fell about 1.7% in premarket trading on Monday as the company also reported a fourth-quarter profit in line with expectations.McDonald's said global sales at restaurants open at least 13 months rose 3.7% overall in December. They gained 2.6% in the United States, down 0.6% in Europe and rose 8.9% for Asia-Pacific, Middle East and Africa.Wall Street had expected December same-restaurant sales to be up 3.9% in the United States, up 3.4% in Europe and gain 5.7% in APMEA, according to Janney analyst Mark Kalinowski.For January, the company expects global same-restaurant sales to increase in a range of 4% to 5%. Net income in the fourth quarter rose to USD 1.24 billion, or USD 1.16 a share, compared with USD 1.22 billion, or USD 1.11 a share, in the year-earlier quarter. The profit matched what analysts polled Thomson Reuters I/B/E/S had expected.McDonald's shares dropped to USD 73.73 in premarket trading from Friday's closing price of USD 75.01 on the New York Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
