- McDonald’s earnings fall short of estimates for the first time in two years.
- Its promotions struggled to lure U.S. customers away from the competition.
McDonald’s on Tuesday reported earnings that fell short of estimates for the first time in two years as its promotions struggled to lure U.S. customers away from the competition.
Shares of the company fell 2% in premarket trading.
The fast-food giant reported fiscal third-quarter net income of $1.6 billion, or $2.11 per share, unchanged from $1.6 billion, or $2.10 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $2.21.
Net sales rose 1% to $5.4 billion, narrowly missing expectations of $5.5 billion. The company reported global same-store sales growth of 5.9%, thanks to strong performance in its international markets.
U.S. same-store sales grew by 4.8% during the quarter, falling short of Wall Street’s estimates of 5.2%. The United States accounts for more than a third of the company’s total revenue. McDonald’s said national and local promotions, menu price increases and tech-focused upgrades to stores drove domestic same-store sales growth. The company has been renovating U.S. stores with features that usually encourage customers to spend more, like self-order kiosks and digital menu boards…