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Chicago - McDonald’s, the world’s biggest restaurant chain, reported same-store sales growth that missed analysts’ estimates as the US fast-food industry suffers a slowdown.
Same-store sales grew 3.1% globally, the Oak Brook, Illinois-based company said in a statement on Tuesday. Analysts projected a 3.6% increase on average, according to Consensus Metrix.
Analysts such as Stifel Financial Corporate Paul Westra have raised concerns that the US restaurant industry is heading into a recession, a harbinger for a broader economic slump next year.
Fast-food rivals such as Wendy’s Company also are piling on discounts and promotions; putting pressure on McDonald’s to keep prices low.
That’s undercut the benefit of adding all-day breakfast in the US last year.
McDonald’s same-store sales gains slowed to 1.8% last quarter domestically, compared with 5.4% in the prior quarter. Analysts estimated a 3.2% increase.
The shares fell 2.7% to $124 in early trading in New York. McDonald’s had gained 7.8% this year through Monday’s close, outpacing the 6.1% increase of the Standard & Poor’s 500 Index.
McDonald’s also is facing additional costs as part of its turnaround plan. The company is selling company-owned restaurants and moving its headquarters from the suburbs to downtown Chicago.
