Photo: Guang Niu/Getty Images
McDonald’s, one of the nation’s largest chains and a key barometer of the global economy, reported relatively flat sales growth during the second quarter, missing expectations.Sales improved less than one per cent from the year-ago period to $6.92 billion.
Currency movements impacted the company’s bottom line, with McDonald’s earning $1.35 billion or, $1.32 per share. Foreign exchange movements took $0.07 off that figure.
Analysts polled by Bloomberg forecast the company would earn $1.38 per share on sales of $6.96 billion.
“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,” Chief Executive Don Thompson said.
Comparable store sales held up well during the three months ended June 30, improving 3.7 per cent.Europe led that increase, with McDonald’s citing strong trends in the U.K. and Russia, with France and Germany continuing to contribute to better top line figures.
Sales in the U.S. were also robust, up 3.6 per cent, while same-store sales in the Asia Pacific grew modest 0.9 per cent.
“As we begin the third quarter, global comparable sales for July are expected to be positive, but less than second quarter,” Thompson said.
Shares are more than 2 per cent lower in pre-market trade.
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