McDonald's Corp (MCD.N) reported a steeper-than-expected fall in global same-restaurant sales in November and said current-quarter results would be hurt by the after-effects of a supplier scandal in China and a stronger dollar.
McDonald's shares fell 3 percent premarket on Monday after the company also warned that weakening sales would "significantly pressure" margins in the quarter.
The world's largest restaurant chain has been battling competition from Wendy's Co (WEN.O) and Burger King Worldwide Inc (BKW.N) as well as from chains that use fresh ingredients such as Chipotle Mexican Grill Inc (CMG.N) and Subway.
Worldwide sales at restaurants open at least 13 months fell 2.2 percent in November. Analysts on average had estimated a decline of 1.7 percent, according to Consensus Metrix.
The company said the supplier scandal in China would reduce its profit for the quarter ending Dec. 31 by 7-10 cents per share.
McDonald's is working to lure back diners in China and Japan after a TV news expose showed workers using expired meat and doctoring food production dates. The scandal sent the company scrambling to find new sources for ingredients to make its popular Chicken McNuggets and Big Macs.
Same-restaurant sales were down 2 percent in Europe and down 4 percent in the Asia/Pacific, Middle East and Africa region.
Same-restaurant sales fell 4.6 percent in the United States, more than the average analyst estimate of a decline of 1.9 percent. McDonald's U.S. same-restaurant sales have not increased since October 2013.
The stronger dollar will hurt fourth-quarter profit by 7-9 cents per share, the company said.
Ottawa Real Estate City Guide
"Where Do We Go From Here?" Posted Oct. 23, 2011, 9:32 p.m. EST by OccupyWallSt On the one month annivers...
Taipei City Guide - Interactive Country Guide Interactive Search City Guide - Country Guides eBook Author: R.G.Richardson No typing jus...
Lima City Guide - Interactive Search City Guide - Country Guides eBook Author: R.G.Richardson No typing just pick and click with over 1...