McDonald’s reported a 6 per cent increase in third-quarter profits on Monday, but the company’s earnings report also said sales would be flat in October and in the fourth quarter.

The fast food chain said its earnings were 1.52 a share, slightly better than the expectations of Wall Street analysts. Sales in the quarter rose 2 per cent to $ 7.32 billion, which were lower than analysts’ projections of $ 7.34 billion, a company news release said.

McDonald’s has been struggling to boost sales as it faces more and more competition and as eating habits change. In also continues to feel the full brunt of sluggish economies in its Asia/Pacific, West Asia and Africa market, where sales fell 1.4 per cent.

Third-quarter operating income declined 12 per cent, reflecting weakness in China, Japan and Australia due in part to weakness in those countries’ economies, the company said.

“While we are focused on strengthening our near-term performance, the current environment continues to pressure results,” said Chief Executive Don Thompson.

Related Topics