McDonald’s Corp. (NYSE:MCD), the world’s largest restaurant chain, edged higher even as it reported weaker-than-expected quarterly sales, hurt by a decline in customer visits at established locations.
McDonald's inched up 0.4 percent to $95.25 at 3:56 p.m. in New York, trimming this year's losses to 1.9 percent.
Global sales slipped 0.1 percent at locations open at least a year in the three months ended Dec. 31, the Oak Brook, Illinois-based company said in a statement today. In the U.S., the figure fell 1.4 percent.
It rose 1 percent in Europe and fell 2.4 percent for the unit encompassing Asia, the Middle East and Africa.
The figure is a key growth metric for retailers as it measures sales at stores open longer than a year.
McDonald's forecast "relatively flat" January global sales at restaurants open at least 13 months.
Total revenue rose 2 percent to $7.09 billion in the quarter, lagging behind analysts’ estimate of $7.11 billion, on average.
Net income in the fourth quarter was about $1.4 billion, or $1.40 a share, compared with $1.4 billion, or $1.38, a year earlier. That beat analysts' estimate of $1.39 a share, according to Bloomberg.
"While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers," Chief Executive Officer Don Thompson said in the statement.
The company said it expects to return $5 billion this year to shareholders through dividends and share repurchases.
McDonald's has been promoting its new Dollar Menu & More, which has items priced at $1 and $2, to attract Americans amid shrinking consumer confidence. It is facing stiff competition as Burger King Worldwide Inc. (NYSE:BKW) and Wendy’s Co. (NASDAQ:WEN) sell more lower-priced sandwiches.
McDonald's executives say they have learned from their mistakes of the past year and are moving to correct them. "We overcomplicated the restaurants and didn't give restaurants an opportunity to breathe," Tim Fenton, McDonald's chief operating officer, said during a conference call after the earnings release. "We need to do fewer products with better execution."
McDonald's, which has more than 34,900 restaurants worldwide and 81 percent of those are franchised, said it is budgeting for $3 billion in 2014 capital expenditures, which will cover up to 1,600 new restaurant openings and the refurbishing of more than 1,000 existing locations.
Reported by Proactive Investors 9 hours ago.
McDonald's inched up 0.4 percent to $95.25 at 3:56 p.m. in New York, trimming this year's losses to 1.9 percent.
Global sales slipped 0.1 percent at locations open at least a year in the three months ended Dec. 31, the Oak Brook, Illinois-based company said in a statement today. In the U.S., the figure fell 1.4 percent.
It rose 1 percent in Europe and fell 2.4 percent for the unit encompassing Asia, the Middle East and Africa.
The figure is a key growth metric for retailers as it measures sales at stores open longer than a year.
McDonald's forecast "relatively flat" January global sales at restaurants open at least 13 months.
Total revenue rose 2 percent to $7.09 billion in the quarter, lagging behind analysts’ estimate of $7.11 billion, on average.
Net income in the fourth quarter was about $1.4 billion, or $1.40 a share, compared with $1.4 billion, or $1.38, a year earlier. That beat analysts' estimate of $1.39 a share, according to Bloomberg.
"While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers," Chief Executive Officer Don Thompson said in the statement.
The company said it expects to return $5 billion this year to shareholders through dividends and share repurchases.
McDonald's has been promoting its new Dollar Menu & More, which has items priced at $1 and $2, to attract Americans amid shrinking consumer confidence. It is facing stiff competition as Burger King Worldwide Inc. (NYSE:BKW) and Wendy’s Co. (NASDAQ:WEN) sell more lower-priced sandwiches.
McDonald's executives say they have learned from their mistakes of the past year and are moving to correct them. "We overcomplicated the restaurants and didn't give restaurants an opportunity to breathe," Tim Fenton, McDonald's chief operating officer, said during a conference call after the earnings release. "We need to do fewer products with better execution."
McDonald's, which has more than 34,900 restaurants worldwide and 81 percent of those are franchised, said it is budgeting for $3 billion in 2014 capital expenditures, which will cover up to 1,600 new restaurant openings and the refurbishing of more than 1,000 existing locations.
Reported by Proactive Investors 9 hours ago.