McDonald's Posts Lackluster Same-Store Sales Growth

McDonald's Corp. posted weaker-than-expected same-store sales in its latest quarter, a sign that the boost from its all-day breakfast offerings may be receding.

Shares fell 3% to $123.6 in premarket trading.

Sales at existing stores rose 3.1% in the period, just below the consensus estimate of 3.6% growth in a survey of analysts by Consensus Metrix. But in the U.S., comparable sales rose 1.8% in the U.S., far below the 3.2% growth anticipated by analysts.

All-day breakfast continued to power domestic sales, but the company said it faced "softening industry growth" in the period. International sales rose 2.6%, meeting analysts' views.

Since taking the helm last March, Chief Executive Steve Easterbrook has moved to bolster the company's sales by paring down its menu, offering more transparency about how its food is made and launching all-day breakfast at many of its domestic restaurants.

The CEO has previously said the initial boost from the expanded breakfast menu hours would eventually moderate, and investors are eager to hear what else McDonald's has up its sleeve.

Over all for the three months ended in June, McDonald's reported a profit of $1.09 billion, or $1.25 a share, compared with $1.2 billion, or $1.26 cents, a year earlier. Excluding items, the company earned $1.45 a share. Analysts had projected $1.38 in per-share earnings.

Revenue fell 4% to $6.27 billion, meeting analysts' expectations.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 09:05 ET (13:05 GMT)

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