New promotions and cheaper eats couldn’t save McDonald’s from economic weakness in Europe.
The fast-food giant missed second-quarter profit and sales estimates and its shares dipped 2.7 percent — its largest single-day drop in nine months.
The Oak Brook, Ill., company reported sales of $7.08 billion, a faint 2 percent increase from $6.92 billion reported the last year.
Profits were $1.4 billion, or $1.38 a share, up from $1.35 billion, or $1.32.
The company’s stock has performed below major rivals recently. Analysts say the reason they have been outperformed is because of decreased earnings and sales.
“[McDonalds’s] same-store sales outperformed for many years and now they’re being outperformed by other competitors,” said analyst Lynne Collier at Sterne, Agee and Leach. “Other competitors are gaining on McDonald’s after they had the lead a few years ago.”
McDonald’s shares closed yesterday at $97.58. They are up 13 percent for the year.