NEW YORK: Fast-food chain McDonald’s said yesterday its first-quarter profit dropped 5.2 percent amid declining sales in its key US home market, and vowed to boost global sales.
Profit for the first three months of the year was $1.20bn compared with $1.27bn in the year-ago period. Diluted earnings per share of $1.26 were down 4 percent from a year ago and came in three cents shy of Wall Street expectations. Revenues rose 1.4 percent to $6.70bn, slightly below estimates.
The home of the “Golden Arches” said that in the United States, comparable sales — sales of restaurants open at least a year — fell 1.7 percent in the January-March period and operating income dropped 3 percent. McDonald’s said the weakness in sales came “amid challenging industry dynamics and severe winter weather.” The Oak Brook, Illinois-based company is facing stiff competition in the fast-food breakfast war in the US. As part of its fight back, the company kicked off a two-week nationwide free coffee promotion during breakfast hours on March 31. AFP
