Mcdonald's 1Q earnings flat as sales sputter
McDonald's November restaurant sales beat expectations. (Reuters / December 10, 2012)
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McDonald's said Friday that its first-quarter profit was flat from a year earlier as the world's largest hamburger chain continued to face a string of disappointing monthly sales blamed on penny-pinching consumers and intense competition from rivals.
The Oak Brook-based company earned $1.27 billion, or $1.26 per share in the most recent quarter, compared with last year's first-quarter profit of $1.27 billion or $1.23 per share. The reason overall profit stayed the same and per-share results improved is because McDonald's had fewer outstanding shares this year than last.
Revenue inched higher to $6.61 billion from $6.55 billion in last year's first quarter. Sales at established stores fell 1 percent.
McDonald's has been trying to emphasize value on its menu to drive more traffic in its stores, focusing heavily on the Dollar Menu and other promotions. But it's also launched several new higher-priced menu items to drive sales.
Still, McDonald's said Friday it expects its sales at established stores will fall again by 1 percent in April. That metric fell in January for the first time in nine years.
The Oak Brook-based company earned $1.27 billion, or $1.26 per share in the most recent quarter, compared with last year's first-quarter profit of $1.27 billion or $1.23 per share. The reason overall profit stayed the same and per-share results improved is because McDonald's had fewer outstanding shares this year than last.
Revenue inched higher to $6.61 billion from $6.55 billion in last year's first quarter. Sales at established stores fell 1 percent.
McDonald's has been trying to emphasize value on its menu to drive more traffic in its stores, focusing heavily on the Dollar Menu and other promotions. But it's also launched several new higher-priced menu items to drive sales.
Still, McDonald's said Friday it expects its sales at established stores will fall again by 1 percent in April. That metric fell in January for the first time in nine years.
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