McDonald's profit falls 8.0% on weaker dollar

Revenue fell 7.0% to $5.64 billion in April-June period, the global restaurant chain said.

Earnings per share of 98 cents were in line with the average analyst forecast of 97 cents, but revenue fell short of market expectations of $5.72 billion.

The Oak Brook, Illinois-based company said that operating income in the United States rose 5.0% and its market share grew thanks to classic menu items like the Big Mac and innovations such as specialty coffees aimed at competing with coffee chain Starbucks.

"In constant currencies, the company posted higher revenues, operating income and earnings per share compared with the prior year," McDonald's said.

On that foreign-exchange basis, operating income jumped 10.0% in Europe and 34% in Asia/Pacific, Middle East and Africa.

"I am pleased with McDonald's results and remain confident in our outlook for the year," said chief executive Jim Skinner.

"As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June."

Source: AFP

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