McDonald’s just reported first quarter earnings and it’s a disappointment.
The company reported earnings excluding charges of $US1.01, missing expectations for $US1.06 as global same-store sales fell 2.3% which the company said reflected “negative guest traffic in all major segments.”
In the US, same-store sales fell 2.6%, while same-store sales declined by 0.6% in Europe. Same-store sales were down by 8.3% in its APMEA region in the first quarter.
McDonald’s revenue in the first quarter totaled $US5.96 billion, slightly better than the $US5.95 billion Wall Street was looking for. Compared to the year earlier, revenue was down 11%, reflecting 10% of negative currency impacts.
Regarding its US operations, the company said operating income declined 11% in Q1, reflecting weak sales results and the impact of restructuring and restaurant closing charges.
McDonald’s added that it “continued to simplify its menu and focus on local menu initiatives to be more responsive to consumers’ preferences.”
In Europe, operating income declined by 20%, which the company said reflected “soft consumer sentiment and currency and inflation pressures in Russia, as well as ongoing macro-economic headwinds across much of Europe.”
More to come …