Reuters

(Reuters)

McDonald's 2Q Revenue Drops 3.6%, Shares Fall

Industries Reuters

McDonald's reported much lower-than-expected quarterly sales growth at established restaurants in the United States and the burger chain said it faced "a challenging environment in several key markets."

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Comparable sales at U.S. restaurants open at least 13 months rose 1.8 percent in the second quarter, widely missing the average analyst estimate of a 3.2 percent rise, according to research firm Consensus Metrix.

McDonald's shares fell 3.5 percent to $122.97 in premarket trading on Tuesday.

Comparable sales at worldwide restaurants increased 3.1 percent, missing the average estimate of 3.6 percent rise.

The company's net income fell 9.1 percent to $1.09 billion, or $1.25 per share, in the quarter ended June 30.

Total revenue declined 3.5 percent to $6.27 billion, in line with the average analyst estimate, according to Thomson Reuters I/B/E/S.

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Excluding some items, McDonald's earned $1.45 per share, according to Thomson Reuters calculation, topping the average estimate of $1.38.

 

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Kirti Pandey)