McDonald's: shares dip after lackluster earnings

(CercleFinance.com) - McDonald's, the world's largest restaurant group, reported on Tuesday a drop in quarterly sales and earnings on the back of its strategic refranchising initiative.


First-quarter net income was 1.33 billion dollars, or 1.72 dollar per share, compared with 1.37 billion dollars, or 1.72 dollar a share, a year ago, below the consensus of 1.76 dollar a share.

While comparable sales increased 5.4% in the first quarter, total sales fell by 4% to 4.95 billion dollars, slightly above analysts' average revenue estimate of 4.93 billion dollars.

After these results, the shares of the Chicago-based company fell by 0.3% to 196.6 dollars on the New York Stock Exchange in early trading.

McDonald's shares have risen by 17.7% in the past year, outperforming a rise of about 10% in the Dow Jones Industrial Average, which the share belongs to.

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