Proactive Investors - McDonald's Corp (NYSE:MCD, ETR:MDO) shares traded modestly lower after the fast food giant’s first quarter earnings fell short of estimates.
Adjusted earnings per share (EPS) were up 2% from the year-ago quarter at $2.70, missing estimates of $2.71.
Same-store sales also missed estimates. They rose 1.9%, below the 2.1% expected.
The company said same-store sales in the US benefitted from menu price increases, marketing featuring its core menu and digital and delivery growth.
The ongoing impact of conflict in the Middle East also more than offset positive comparable sales in Japan, Latin America, and Europe, McDonald’s said.
Total revenue increased 5% year-over-year to $6.17 billion, in line with estimates.
The company added in its post-earnings call that it plans to roll out promotions and marketing to accelerate sales, as cost-conscious customers cut back on eating out amid continued high inflation.
"We have seen that our relative superiority on affordability has declined in some markets," CEO Chris Kempczinski told investors.
Shares of McDonald’s traded down 0.3% at $272.80 late morning on Tuesday.