Fast food behemoth McDonald's Corp. reported a first-quarter net profit that fell to $811.5 million, or 84 cents a share, from $1.2 billion, or $1.21 a share, in the year-earlier period. One-time charges and costs reduced earnings per share by 17 cents during the period, while unfavorable currency movements reduced EPS by 9 cents. The FactSet EPS consensus was $1.06. Revenue fell 11% to $5.96 billion, matching the FactSet consensus, as better-than-expected revenue from company-operated stores offset a miss in revenue from franchised restaurants. Global same-store sales fell 2.3%, amid a 2.6% decline in U.S. same-store sales, missing the FactSet consensus for declines of 2% and 2%, respectively. The company said sales fell in the U.S. because product and promotional offers could not overcome competitive activity. "McDonald's management team is keenly focused on acting more quickly to better address today's consumer needs, expectations and the competitive marketplace," said Chief Executive Steve Easterbrook. "We are developing a turnaround plan to improve our performance and deliver enduring profitable growth." The plan will be unveiled on May 4. The stock, a component of the Dow Jones Industrial Average , tacked on 0.7% in premarket trade. It has gained 1.3% year to date while the Dow has edged up 0.7%.
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