McDonald’s Corp., the world’s largest restaurant chain, said that third-quarter profit fell 30 per cent, as US sales slumped for the fourth straight quarter.
Net income dropped to $1.07 billion, or $1.09 a share, from $1.52 billion, or $1.52, a year earlier, the Oak Brook, Illinois-based company said in a statement.
Excluding some items, profit was $1.51 a share. The average of 21 analysts’ estimates compiled by Bloomberg was $1.36 a share.
McDonald’s, which has been struggling to draw American diners amid steep competition, also is facing consumer backlash in China after a supplier was investigated for changing food expiration dates.
Sales at McDonald’s US stores open at least 13 months fell 3.3 per cent in the third quarter. Analysts estimated a 2.9-per-cent drop, according to Consensus Metrix. Revenue dropped 4.6 per cent to $6.99 billion, trailing analysts’ $7.19-billion projection. The shares fell as much as 3.2 per cent to $88.69 at 7.58am in early trading in New York. McDonald’s slumped 5.6 per cent this year, while the Standard & Poor’s 500 Restaurants Index declined 3.8 per cent.
Bloomberg News, edited by ESM
