For the second quarter, McDonald's (NYSE:MCD) saw a decline in net income.
Earnings and Revenue The company posted revenues in line with analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of $1.32 a share versus the $1.38 a share estimate and revenues of $6.92 billion versus the $6.94 billion estimate. The company's reported EPS came in below the low estimate of 23 analysts of a profit of $1.33.
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The company's net income for the quarter was $1.35 billion. According to the reported number, this is down 4.5% from last year's levels. Revenue climbed 0.2% from $6.91 billion in the same period last year.
Company Fundamental Trends With last quarter's falling profit, The company ends a run of at least four consecutive quarters of year-over-year profit increases. The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.
History Against Expectations The company missed estimates last quarter after meeting expectations the quarter before. It reported net income of $1.23.
Official Comment: "McDonald's global comparable sales remained solid for the quarter while overall results reflected the slowing global economy, persistent economic headwinds and the investments we've made to enhance restaurant operations and provide customers the everyday value they have come to expect from McDonald's," said McDonald's Chief Executive Officer Don Thompson. "Our System alignment and ongoing commitment to our global priorities of optimizing our menu, modernizing the customer experience and broadening accessibility to our brand will help us navigate the current environment as we continue to build our business and our brand. As we begin the third quarter, global comparable sales for July are expected to be positive, but less than second quarter."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.