McDonald's Stock Falls After Same-store Sales Disappoint

McDonald's Corp.'s stock dropped 1.1% in premarket trade Thursday, after the fast-food giant reported second-quarter same-store sales that missed expectations, reflecting negative guest traffic in all major segments. Earnings for the quarter ended June 30 fell to $1.2 billion, or $1.26 a share, from $1.39 billion, or $1.40 a share, in the same period a year ago. That beat the FactSet earnings-per-share consensus of $1.23. Revenue declined 10% to $6.5 billion, topping the FactSet consensus of $6.43 billion. But global same-store sales declined 0.7%, compared with the FactSet consensus of a 0.6% decline. Same-store sales fell 2% in the U.S., worse than expectations of a 1.5% decline, while Europe's 1.2% increase fell shy of expectations of a 1.3% rise. "While our second quarter results were disappointing, we are seeing early signs of momentum," said Chief Executive Steve Easterbrook. "Looking ahead to third quarter, we expect positive global comparable sales led by growth in our newly-created International Lead Market segment and China's continuing recovery from the 2014 APMEA supplier issue." The stock has gained 0.6% over the past three months through Wednesday, while the Dow Jones Industrial Average has lost 1.2%.