McDonald's dashed investor hopes that its business would strengthen in the second half of the year, blaming tougher competition in the US and weaker sales in Europe.

The world’s biggest restaurant chain by sales reported a lower-than-expected quarterly profit and said it expects global same-restaurant sales in July to be relatively flat, sending its shares down more than 2 per cent in early trading.

Wall Street analysts had expected McDonald's business to pick up in the middle of this year as food inflation and other pressures ease. The latest quarterly results from the seller of Big Mac hamburgers and Happy Meals for children heaps pressure on Don Thompson, who was promoted to chief executive in July 2012, when the chain was enjoying a multi-year run of rising sales and profits. – (Reuters)