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Weak sales in Europe and Asia contributed to disappointing second quarter earnings for McDonald’s, with the world’s largest fast-food chain by revenue warning Monday of a tough year ahead.
Global sales compared to a year earlier increased by a modest 1 per cent, with a net income of $ 1.4 billion.
In the United States, second-quarter comparable sales rose 1 per cent while operating income was relatively flat.
Earnings were dragged down by sales in Europe, which saw a decline of 0.1 per cent in the quarter. In Asia, West Asia and Africa they fell 0.3 per cent.
“Based on recent sales trends, our results for the remainder of the year are expected to remain challenged,” McDonald’s Chief Executive Don Thompson said.
Thompson said “the informal eating out market remains challenging” as economic uncertainty puts pressure on consumer spending.
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