(Adds details on results, China meat scandal, Chipotle results)
July 22 Quarterly profit at McDonald's Corp
fell more than expected after established restaurants in
its struggling U.S. division turned in a third straight
quarterly sales decline and results from Europe also logged a
Weakness in the world's biggest hamburger chain's two top
markets, coupled with its warning of a global fall in
same-restaurant sales for July, also helped send McDonald's
shares down 1.1 percent in early trading on Tuesday.
McDonald's gets about 30 percent of its revenue from the
United States, where sales at restaurants open at least 13
months fell 1.5 percent in the second quarter. Traffic remained
depressed amid tough competition from a range of rivals, which
include Wendy's Co, Burger King Worldwide Inc
and privately held Chick-fil-A.
Analysts had expected McDonald's U.S. comparable sales to
fall just 0.3 percent, according to research firm Consensus
McDonald's results stood in sharp contrast to Chipotle
Mexican Grill Inc, which on Monday reported a 17.3
percent jump in same-restaurant sales at its predominantly U.S.
McDonald's said ongoing weakness in Germany was partly to
blame for the 1 percent same-restaurant sales decline in Europe,
which just beats out the United States as the fast-food chain's
top revenue market. Analysts had expected a gain of 0.7 percent,
according to Consensus Metrix.
The Asia-Pacific, Middle East and Africa (APMEA) region rose
1.1 percent. The results got a boost from China, which just
recovered from food safety and bird flu scares but now is
embroiled in a new controversy over a major supplier's meat
handling methods. ID:nL4N0PX0CK]
Still, the region's results were light compared with
analysts' call for a rise of 1.5 percent.
Second quarter net income fell almost 1 percent to $1.39
billion, or $1.40 per share, missing analysts' average profit
estimate by 4 cents per share, according to Thomson Reuters
McDonald's shares were trading at $96.07 at in late morning
trading. The stock traded at all-time highs above $100 in May.
(Reporting by Lisa Baertlein in Los Angeles and Shailaja Sharma
in Bangalore; Editing by Savio D'Souza, Kirti Pandey and Nick