McDonald's, the world's largest fast-food company, today said quarterly profit fell 5 per cent, as higher costs offset recent sales improvement in the United States, its largest market.
The company, which has faced increased competition and a shift in consumer preferences toward healthier foods, said it reported record second-quarter systemwide sales growth of 10 per cent, as it unveiled new products ranging from entree-sized salads to McGriddles breakfast sandwiches.
US sales at McDonald's hamburger outlets open more than a year rose 4.9 per cent, a signal that the company has reversed a sustained sales slump.
Oak Brook, Illinois-based McDonald's said net income fell to $470.9 million, or 37 cents a share, from $497.5 million, or 39 cents a share.
Analysts had expected earnings of 37 cents a share, according to Reuters Research.
McDonald's forecast in mid-July that it would report 37 cents a share in the period, including $50 million in pretax costs for restructuring and $18 million less in gains from sales of franchises than the year before. Systemwide sales rose to $11.5 billion from $10.4 billion.
McDonald's forecast systemwide sales growth of 3 percent to 5 per cent beginning in 2005 and operating income growth of 6 per cent to 7 per cent. The company reported its first-ever quarterly loss in January. Shares of McDonald's closed at $21.26 in New York Stock Exchange trading yesterday.