Home Business McDonald’s Corporation (MCD) Posts Higher Profits, Europe Sales Slump

McDonald’s Corporation (MCD) Posts Higher Profits, Europe Sales Slump

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

McDonald’s Corporation (NYSE:MCD) reported higher profits during the first quarter of the year, but a great-than-expected slump in European sales pushed the stock lower in pre-market trading. The company’s earnings excluding items were $1.26 per share, compared to $1.23 per share in the same quarter a year ago. Revenue jumped from $6.55 billion in the year before to $6.6 billion in this year’s first quarter. Consensus was for earnings of $1.26 to $1.27 per share on $6.6 billion in revenue.

McDonald's Corporation (MCD) Posts Higher Profits, Europe Sales Slump

The fast food giant reported a decline of 1 percent in global comparable store sales, which was slightly ahead of the 1.1 percent that was expected. Sales in comparable store sales in the U.S. were down 1.2 percent, compared to the expected decline of 1.1 percent. In the Asia Pacific, Middle East and Africa, sales were down 3.3 percent, compared to expectations of 3.8 percent.

The one area where McDonald’s sales especially slumped was in Europe. Analysts were expecting McDonald’s Corporation (NYSE:MCD) to report a fall of 0.8 percent in European sales, but the company reported a 1.1 percent decline.

“While the company’s results for the quarter reflected difficult to prior year comparisons and the ongoing impact of global economic headwinds, we continue our efforts to build market share and deliver sustained profitable growth for all stakeholders,” said President and CEO Don Thompson in a statement.

McDonald’s Corporation (NYSE:MCD) said it expects sales at established stores to drop again by 1 percent this month. January’s decline of that number was the first in nine years.

As of the moment of this writing, shares of McDonald’s Corporation (NYSE:MCD) were down 1.45 percent in pre-market trading.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Michelle Jones
Editor
Dividends

The Top Vanguard ETFs for Dividends

Dave Kovaleski19 hours

With concerns over market choppiness, investors can find good values in these excellent dividend ETFs. Dividend stocks and exchange-traded funds, or ETFs, are more popular investments when markets are volatile,...

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.