Mcdon­ald’s rev­enue fig­ure falls short of ex­pec­ta­tions

The Washington Times Daily - - Business -

NEW YORK | Mcdon­ald’s Corp. said Thurs­day that a key rev­enue fig­ure came in short of ex­pec­ta­tions in Fe­bru­ary as se­vere weather in parts of Europe and the tim­ing of the Chi­nese New Year hurt its per­for­mance.

The world’s big­gest ham­burger chain also noted that it’s nav­i­gat­ing an en­vi­ron­ment of “per­sis­tent eco­nomic un­cer­tainty, aus­ter­ity mea­sures in Europe, and com­mod­ity and la­bor cost pres­sures, par­tic­u­larly in the U.S.”

The Oak Brook, Ill.-based com­pany said the chal­lenges are ex­pected to hurt its first quar­ter op­er­at­ing in­come growth.

For Fe­bru­ary, the com­pany said global rev­enue in restau­rants open at least 13 months rose by 7.5 per­cent, driven by an ex­tra day in the leap year and strong re­sults in the United States.

But that still fell short of the 7.7 per­cent in­crease an­a­lysts on av­er­age were ex­pect­ing, ac­cord­ing to a poll by Thom­son Reuters.

Shares of Mcdon­ald’s fell $3.30, or 3.3 per­cent, to $96.88 in morn­ing trad­ing. They had surged to $102.22 on Jan. 20 but are up 33 per­cent from their low of $72.89 al­most a year ago.

Mcdon­ald’s said its strong­est per­for­mance last month came from the U.S., where new menu items such as the Chicken Mcbites and break­fast sta­ples helped in­crease the rev­enue fig­ure by 11.1 per­cent.

AS­SO­CI­ATED PRESS

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