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Washington - McDonald's on Friday reported a first-quarter profit that fell short of Wall Street's expectations, as sales at established US restaurants dropped 1.2% in a tough environment.
The company, the world's biggest restaurant chain, also said that its global comparable sales should be down slightly in April. Its shares fell to $100.30 in premarket trading, from Thursday's closing price of $101.91.
Global comparable sales fell 1% in the first quarter. Analysts, on average, expected first-quarter sales at established restaurants to fall 1.1%, according to Consensus Metrix. That included a call for a 1.1% decline in the United States.
McDonald's said March same-store sales at established US restaurants dropped 1.2%. Analysts had been looking for a 0.15% increase in such sales, according to Consensus Metrix.
The "challenging" global environment and profit pressures are expected to persist, Chief Executive Don Thompson said in a statement.
Net income rose to $1.27bn, or $1.26 per share, from $1.267bn, or $1.23 per share, a year earlier. Analysts, on average, were looking for earnings of $1.27 per share, according to Thomson Reuters.
Total first-quarter revenue rose 0.9% to nearly $6.61bn, higher than the $6.59bn estimated by analysts.
Shares of McDonald's recently hit a record high above $103 on the expectation that results will improve in the second half of 2013, when the chain will no longer be up against year-earlier US results that were bolstered by unseasonably warm winter weather.
Fast-food chains like Burger King Worldwide Inc, Wendy's Co and Yum Brands Inc's Taco Bell have introduced new US menus and are doing a better job of competing with McDonald's. At the same time, frugal diners have been shopping for deals.
