McDonald’s, the world’s largest restaurant chain, said third-quarter profit fell 30 percent as US sales slumped for the fourth straight quarter. Net income dropped to $1.07 billion, from $1.52 billion a year earlier, the Oak Brook, Illinois-based company said in a statement.
"McDonald's third quarter results reflect a significant decline versus a year ago, with our business and financial performance pressured by a variety of factors—from a higher effective tax rate, to unusual events in the operating environments in APMEA and Europe, to under-performance in the US, our largest geographic segment," said Don Thompson, McDonald's president and CEO.
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McDonald’s, which has been struggling to draw American diners amid steep competition, also is facing consumer backlash in China after a supplier was investigated for changing food expiration dates. Sales at McDonald’s US stores open at least 13 months fell 3.3 per cent in the third quarter. Analysts estimated a 2.9 percent drop, according to Consensus Metrix.
Revenue dropped 4.6 percent to $6.99 billion, trailing analysts’ $7.19 billion projection.