McDonald’s just reported Q1 earnings of $US1.21 per share, missing analysts’ expectations for $US1.24.
This was on net revenue of $US6.70 billion, which was a hair below the $US6.72 billion expected.
Comparable store sales worldwide climbed 0.5% year-over-year. Here’s a regional breakdown:
- U.S. down 1.7%
- Europe up 1.4%
- Asia/Pacific, Middle East and Africa up 0.8%.
The U.S. is obviously the laggard, missing analysts’ expecation for a 1.4% drop. Management also warned that March comp sales fell 0.6% in the U.S., which was much worse than the 0.2% decline expected.
“By leveraging a deeper understanding of what our customers want with the power of our business model, our investments in restaurant capabilities and modernization, and our hard-earned competitive advantages, we will grow McDonald’s business and deliver enduring profitable growth over the long term,” said CEO Don Thompson. “As we begin the second quarter, global comparable sales for the month of April are expected to be modestly positive.”
“Looking forward, McDonald’s is focused on stabilizing key priority markets including the U.S., Germany, Australia and Japan,” said management.
Taco Bell recently enterered the U.S. breakfast market, which may be putting pressure on McDonald’s sales.