McDonald’s Shares Dip on Weak Q3 Results

by Christopher Freeburn | October 19, 2012 11:33 am

Shares of McDonald’s (NYSE:MCD[1]) fell more than 3% in Friday morning trading after it reported quarterly results that disappointed investors[2].

The iconic burger chain said it earned $1.46 billion during the third quarter, down almost 4% from $1.51 billion in the same period last year. EPS was $1.43, which missed Wall Street estimates of $1.47, the Associated Press noted.

McDonald’s posted quarterly revenue of $7.15 billion, down fractionally from $7.17 billion in 2011, and narrowly missing analysts’ forecasts of revenue of $7.17 billion. Company officials said a rising U.S. dollar lowered revenue from international operations, trimming profits by 8 cents a share.

The chain reported that same-restaurant revenue in the U.S. rose 1.2% compared to last year, while global same-restaurant sales rose 1.9%. The chain is facing rising competition in North America from rivals including Burger King (NYSE:BKW[3]), Wendy’s (NYSE:WEN[4]), Panera Bread (NASDAQ:PNRA[5]) and Yum Brands‘ (NYSE:YUM[6]) Taco Bell.

Last month, McDonald’s said it would soon introduce menus listing calorie counts[7], reversing its former opposition to the practice, in a bid to attract more weight-conscious customers.

Endnotes:
  1. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  2. quarterly results that disappointed investors: http://www.washingtonpost.com/business/mcdonalds-3rd-quarter-net-income-falls-hurt-by-stronger-dollar/2012/10/19/31505d96-19e7-11e2-ad4a-e5a958b60a1e_story.html
  3. BKW: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKW
  4. WEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=WEN
  5. PNRA: http://studio-5.financialcontent.com/investplace/quote?Symbol=PNRA
  6. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  7. soon introduce menus listing calorie counts: http://investorplace.com/2012/09/mcdonalds-major-change-to-menu-boards/

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