In the APMEA region, comparable sales declined 4.5%.
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McDonald’s, which has more than 36,000 locations around the world, is trying to regain its footing after seeing its profit sink 15 percent a year ago.
The company’s new CEO Steve Easterbrook, who replaced former chief executive Don Thompson earlier this year said in a statement that the company was not happy with the quarterly results but was optimistic that the numerous steps it’s taking will turn things around going forward. There have also been rumblings of McDonald’s rolling out an all-day breakfast menu, and the Oak Brook-based burger giant said local market tests of all-day breakfast and a simpler menu will continue.
In Europe, same-store sales at McDonald’s increased 1.2 percent as “solid performance” in the United Kingdom and Germany offset negative results in France.
The company noted that foreign currency translation had a negative impact of $0.13 on earnings per share for the quarter. To position the business for long-term growth, we’ve undergone significant organizational change and are streamlining our global resources to improve our efficiency and effectiveness.
Said Easterbrook: “We begin (the) third quarter under a new structure supported by market-level focus, stronger accountability and an unwavering emphasis on the basic fundamentals of running great restaurants. We have talented franchisees, suppliers and employees working together to create the change needed to deliver a better experience for our customers”.
On the ratings front, McDonald’s Corporation has been the subject of a number of recent research reports. In the past 52-week period, the stock has been trading in a range of $87.62 to $101.09. The stock’s 50-day moving average is $96.34 and its 200-day moving average is $95.97. The company has a consensus rating of “Hold” and an average target price of $100.18. Analysts at Vetr downgraded shares of McDonald’s Co. from a “buy” rating to a “hold” rating and set a $97.75 price target on the stock in a research note on Wednesday, July 8th.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Greg Badishkanian and David Palmer have a total average return of 18.9% and 16.2% respectively. Two equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and eight have assigned a buy rating to the company.
McDonald’s stock closed Wednesday at $97.58.
The McDonald’s Restaurant USA #1 Store Museum is seen in Des Plaines, Illinois, May 26, 2012.
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On a segmental basis, U.S. comparable sales declined 2 percent, and operating income was down 6 percent.
