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Profits down at McDonald 8217 s

Article By: ,  Financial Analyst
April 23, 2014 11:15 AM

The share price of fast food company McDonald's slipped yesterday (April 22nd) following the latest financial update released by the firm.

It was announced by the company that its profits fell back during the first three months of the year, with sales dropping in its US restaurants, which contributed to the reduced figures.

McDonald's confirmed it recorded a 0.5 per cent increase in group sales over the first quarter of the year, but sales in the US fell by 1.7 per cent during the three-month period.

As analysts had predicted there would be a 1.4 per cent decrease in US sales, the share price of the company fell slightly on the back of the finances announcement.

McDonald's president and chief executive officer Don Thompson stated that the company aspires to be its "customers' favorite place and way to eat and drink, and our actions are grounded in creating the best overall experience for our customers".

European sales

The company announced that comparable sales rose 1.4 per cent in Europe in the first quarter with a positive performance in the UK, France and Russia, while sales in Germany, Japan and Australia were lower during the three-month period.

Net income at the firm fell to $1.2 billion (£710 million) from $1.27 billion a year earlier.

"In the near term, we are prioritising our efforts around those elements of the restaurant experience that are most impactful – offering the best food and beverage options and delivering outstanding service," said Mr Thompson.

"For the long term, we are focused on more effectively leveraging consumer insights to guide our global growth priorities of optimising our menu, modernising the customer experience and broadening accessibility to brand McDonald's. We are intent on pursuing initiatives that will strengthen our relationship with our customers to reignite our business momentum."

Stocks in the firm fell by 0.35 per cent following the release of the new financial data by McDonald's, although they bounced back by 0.24 per cent in after-hours trading on the New York Stock Exchange.

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