* Third-quarter earnings below analysts’ view
* Profit misses expectations for second straight quarter
* Smallest comparable sales rise since 2nd quarter of 2003
* Shares at $90.51 in premarket trade after $92.90 close
(Adds details on September sales, outlook; updates stock
activity)
Oct 19 (Reuters) – McDonald’s Corp missed Wall
Street’s expectations for the second quarter in a row and said
October sales at existing restaurants have fallen as the economy
and competitive pressures hit the world’s biggest fast-food
chain.
A strong U.S. dollar weighed on results once again in the
third quarter.
Shares of McDonald’s, which has stepped up advertising to
fend off resurgent rivals such as Burger King Worldwide Inc
and The Wendy’s Co trade on Friday from Thursday’s closing price of $92.90.
Global sales at restaurants open at least 13 months rose 1.9
percent, the first time that such sales gained less than 2
percent since the second quarter of 2003. Analysts polled by
Consensus Metrix had expected a 2 percent increase.
The sluggish U.S. economy and Europe’s belt-tightening are
squeezing even the most resilient restaurant operators, as
diners spend cautiously on meals away from home.
“October’s global comparable sales are currently trending
negative,” McDonald’s Chief Executive Officer Don Thompson said
in a statement.
Income at McDonald’s fell to $1.46 billion, or $1.43 per
share, in the third quarter, from $1.51 billion, or $1.45 per
share, a year earlier.
Analysts on average had expected McDonald’s to earn $1.47
per share, according to Thomson Reuters I/B/E/S.
The impact of the stronger dollar, which lessens the value
of sales overseas for U.S. companies, trimmed earnings by 8
cents per share.
Total sales slipped to $7.15 billion from nearly $7.17
billion.
Comparable sales rose 1.9 percent in September, topping
analysts’ average forecast of 1.82 percent, according to
Consensus Metrix.
(Reporting by Jessica Wohl in Chicago and Lisa Baertlein in Los
Angeles; Editing by Gerald E. McCormick and Dale Hudson)
