McDonald's global strength helps offset US same-store sales miss
(Reuters) - McDonald's Corp topped global same-restaurant sales estimates for the second quarter on Thursday, with strength in international markets helping offset weakness in the United States.
Shares of the Dow component slipped 0.2 percent in premarket trading at $158.50 after it missed estimates for sales at its established U.S. restaurants.
Restaurant chains in the United States have been fighting for a bigger share of a slow-growing restaurant marketplace by offering dollar menus, discounts on beverages and limited-time menu items as well as freshly prepared meals to diners.
McDonald's quarterly sales at its U.S. restaurants open for at least 13 months rose 2.6 percent, missing the average analyst estimate of 2.96 percent rise.
In contrast to its slowing U.S. business, same-store sales for the company's international lead markets - comprising Australia, Canada, France, Germany and the United Kingdom - rose 4.9 percent, trouncing analysts' expectation of a 3.94 percent gain.
This helped McDonald's worldwide sales at stores open at least 13 months to rise 4 percent and top the average analyst estimate of 3.60 percent, according to Thomson Reuters I/B/E/S.
Net income rose to about $1.50 billion, or $1.90 per share, in the second quarter ended June 30 from about $1.40 billion, or $1.70 per share, a year earlier.
Excluding items, the company earned $1.99 per share, beating the estimate of $1.92.
Revenue fell 12 percent to $5.35 billion, but edged past expectations of $5.32 billion.
The burger giant's stock is down 8 percent since the start of the year, underperforming the S&P 500 Restaurants sub index. In the same period last year, McDonald's stock had risen over 30 percent.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur)