McDonald’s Profits Rise But Miss Expectations

@AFP

NEW YORK CITY, New York (AFP) – Fast-food giant McDonald’s notched a 3.7 increase in second-quarter profits on Monday, but offered a cautious outlook on the rest of 2013 given the uncertain economic environment.

McDonald’s reported $1.40 billion in profits on $7.08 billion in revenues, up from last year’s income of $1.35 billion on revenues of $6.92 billion. Analysts had forecast revenues of $7.09 billion.

The results translated into earnings of $1.38 per share, two cents shy of the $1.40 analyst estimate.

McDonald’s chief executive Don Thompson said “the informal eating-out market remains challenging and economic uncertainty is pressuring consumer spending.”

The company projected “relatively flat” global comparable store sales for July and sees results being “challenged” the rest of 2013.

Operating income in the U.S. was “relatively flat” in the second quarter even as comparable sales rose 1.0 percent. Europe’s comparable sales were down 0.1 percent, but operating income rose 5 percent.

In the Asia/Pacific, Middle East and Africa region, comparable store sales fell 0.3 percent, while operating income declined 1 percent.

“We have succeeded in a variety of operating and economic environments,” Thompson said. “I am confident that our System, global infrastructure and the unique and evolving McDonald’s brand experience will enable us to deliver sustained profitable growth for the long-term.”

McDonald’s shares tumbled 2.3 percent in pre-market trading.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Mike Johnson
Speaker Mike Johnson

House Democratic leadership announced Tuesday that they’ll allow members to block any effort from Rep. Marjorie Taylor Greene (R-GA) and her tiny team of nihilists to oust Speaker Mike Johnson, a reminder of where the power sits in the House.

Keep reading...Show less
Trump Endorses Anti-Abortion Monitoring Of Pregnancy By States

Former President Donald Trump

Killing Abortion Ban Repeal

With little more than six months until Election Day, Donald Trump is preparing for an “authoritarian” presidency, and a massive, multi-million dollar operation called Project 2025, organized by The Heritage Foundation and headed by a former top Trump White House official, is proposing what it would like to be his agenda. In its 920-page policy manual the word “abortion” appears nearly 200 times.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}