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McDonald’s May Same-Store Sales Weaker than Expected; Shares Fall (MCD)

By Dividend.com,  June 08, 2012, 08:57:26 AM EDT

Fast food king McDonald's Corporation ( MCD ) on Friday posted May comparable sales results that missed Wall Street expectations, sending its shares lower in premarket trading.

The Oak Brook, IL-based company reported worldwide same-store sales gains of 3.3%, which missed Wall Street's estimate for a 4.6% rise. MCD cited "ongoing global economic volatility, austerity measures in Europe," and rising administrative costs for the disappointing comps.

The company provided the following breakdown for its geographic segments in May:

  • European same-store sales rose 2.9%,
  • U.S. same-store sales rose 4.4%, and
  • Asia/Pacific, Middle East and Africa same-store sales fell 1.7%.

Additionally, MCD warned that unfavorable currency translation effects would hamper its second quarter earnings by 7 to 9 cents per share.

McDonald's shares fell $2.54, or -2.8%, in premarket trading Friday.

The Bottom Line
We just removed shares of McDonald's ( MCD ) from our recommended list. The stock has technical support in the $82-$85 price area. If the shares can firm up, we see overhead resistance around the $92 price level.

McDonald's Corporation ( MCD ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: MCD



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