McDonald's stock tumbles as same-store sales disappoint
McDonald's stock tumbles as same-store sales disappoint
McDonald's proved Thursday it's not immune from the world's economic problems, as the fast-food giant disclosed June sales (McDonald's Q2 results) that were below Wall Street's expectations, prompting a selloff in its stock.
McDonald's shares fell $2.73, or 4.6 percent, to $56.09, on a day the broad market produced a strong rally. The shares posted their biggest one-day percentage decline in nine months, according to Bloomberg News.
The Oak Brook-based company's second-quarter profits met the expectations of stock analysts. It earned $1.09 billion, or 97 cents per share, excluding one-time items, down 8 percent from last year's quarter. But the drop wasn't surprising, given unfavorable currency trends buffeting companies with extensive overseas operations such as McDonald's.
The bad news lay in McDonald's June same-store sales, an important gauge of where business might be heading. Same-store sales were up only 2.6 percent worldwide over June 2008, short of the roughly 5 percent increase analysts expected.
McDonald's shares fell $2.73, or 4.6 percent, to $56.09, on a day the broad market produced a strong rally. The shares posted their biggest one-day percentage decline in nine months, according to Bloomberg News.
The Oak Brook-based company's second-quarter profits met the expectations of stock analysts. It earned $1.09 billion, or 97 cents per share, excluding one-time items, down 8 percent from last year's quarter. But the drop wasn't surprising, given unfavorable currency trends buffeting companies with extensive overseas operations such as McDonald's.
The bad news lay in McDonald's June same-store sales, an important gauge of where business might be heading. Same-store sales were up only 2.6 percent worldwide over June 2008, short of the roughly 5 percent increase analysts expected.
