New York, NY, United States (4E) – McDonald’s posted lower first quarter profit as the world’s largest hamburger chain continues to see weak sales worldwide.
Net income slid to $1.2bn, or $1.21 a share, for the quarter ended March 31, compared to analysts’ estimate of $1.24 a share. Last year, the company’s earnings stood at $1.27bn, or $1.26 a share. Year-earlier results also received a boost from income tax benefits, according to McDonald’s.
Revenue climbed to $6.7bn, missing analysts’ forecast of $6.71bn.
The company said global sales climbed 0.5 percent at established restaurants. Sales in the U.S. declined 1.7 percent due to a decline in customer traffic. This drop is blamed on tough industry dynamics and severe winter weather.
The Oak Brook, Ill.-based company said worldwide sales for April are projected to be modestly positive.
Same-stores sales grew only 0.2 percent in 2013. The figure excludes data from restaurants that have been open for less than a year, and it offers a more accurate picture of general traffic to the company’s over 35,000 restaurants.