McDonald's Profit Slump
Published on Oct 21 2014 1:47 PM in Restaurant
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.
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.