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.
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.
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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.