Ugly Earnings Reports from McDonald’s

Earlier today, McDonald’s ($MCD) posted its third-quarter results and they weren’t pretty. Net profits plunged 30% to $1.09 per share. Revenue fell 5% to $6.99 billion. The Street had been expecting $7.19 billion.

Excluding a bunch of charges, the burger giant earned $1.51 per share which was 14 cents better than expectations. That’s about the only sliver of good news. The details of MCD’s report are not good. Same-store sales fell by 3.3% which was more than expected. Compare that to Chipotle where same-store sales grew by 19.8%.

In Europe, McDonald’s same-store sales were down 1.4%, and in China, they dropped by 22.7%. There was a scandal in China involving a supplier changing expiration dates. (When it rains, it pours…)

The company realizes they’re in trouble and need to turn themselves around. The shares lost 0.63% today. The big dividend is helping temper some of the decline. MCD now yields 3.74%.

Posted by on October 21st, 2014 at 9:22 pm


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