By Chelsey Dulaney
McDonald's Corp. reported second-quarter profit and revenue that
fell less-than-expected, though its U.S. sales dropped below
estimates as traffic remained depressed and its efforts to draw in
customers fell flat.
Chief Executive Steve Easterbrook, nearly five months into the
job, called the results "disappointing," but said the company is
"seeing early signs of momentum."
Shares of McDonald's, virtually flat over the past three months,
fell 0.6% in premarket trading.
"We have made meaningful progress since announcing the initial
steps of McDonald's turnaround plan in early May," Mr. Easterbrook
said in a news release.
The results come as McDonald's looks to turn itself around after
two years of struggles, including changing consumer tastes in
America and food-safety issues in Asia.
Mr. Easterbrook has said he is working to turn McDonald's into a
"modern, progressive burger company." The company has made a number
of moves in recent months, including eliminating antibiotics from
chicken, introducing better burgers and customizable options and
emphasizing the freshness of its ingredients.
It is also considering offering all-day breakfast nationwide
starting in October, The Wall Street Journal reported this
week.
Sales at stores open at least 13 months fell 0.7% globally in
the latest quarter, worse than the 0.4% analysts polled by
Consensus Metrix had expected. In the key U.S. division, same-store
sales fell 2%, worse than the 1.5% drop Consensus Metrix had
forecast.
McDonald's said its promotions didn't achieve the expected
consumer response.
Overall, McDonald's reported a profit of $1.2 billion, or $1.26
a share, down from $1.39 billion, or $1.40 a share, a year
earlier.
Revenue slid 9.5% to $6.5 billion.
Analysts polled By Thomson Reuters had forecast $1.23 a share in
earnings and $6.45 billion in revenue.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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