Investing.com - Fast food giant McDonald's Corporation (NYSE:MCD) reported weaker-than-expected third quarter earnings and revenue figures on Tuesday, sending its shares lower in pre-market trade.
McDonald’s said earnings per share came in at $1.09 in the three months ended September 30, missing expectations for earnings of $1.36 per share.
The company’s third quarter revenue totaled $6.99 billion, below expectations for revenue of $7.19 billion.
Global comparable sales decrease of 3.3%, reflecting negative guest traffic in all major segments.
In the U.S., third quarter comparable sales decreased 3.3% driven by negative guest traffic amid sustained competitive activity. Operating income for the quarter declined 10% as initiatives to address the current market dynamics did not translate into improved financial results.
"McDonald's third quarter results reflect a significant decline versus a year ago, with our business and financial performance pressured by a variety of factors - from a higher effective tax rate, to unusual events in the operating environments in APMEA and Europe, to under-performance in the U.S., our largest geographic segment," said McDonald's President and Chief Executive Officer Don Thompson.
Immediately after the earnings announcement, MCD) shares fell 2% in trading prior to the opening bell.
Meanwhile, the outlook for U.S. equity markets was upbeat. The Dow futures indicated a gain of 0.45% at the open, the S&P 500 futures pointed to a rise of 0.65%, while Nasdaq 100 futures tacked on 0.8%.