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Still, other analysts have noted that McDonald's growth has slowed in recent times, which could reflect stiffer competition from newer chains like Panera Bread Co., which offers higher-end food in a fast casual atmosphere. Long-time rivals such as Wendy's Inc. and Burger King Worldwide Inc. are also reworking their menus, renovating restaurants and launching new ad campaigns to win back customers. In the U.S., McDonald's said sales rose 3.6 percent in the quarter, with increased traffic contributing to growth. In Europe, where McDonald's does 40 percent of its business, the company said customer traffic was down in several economically hard-hit regions. But the company said that it's faring better than its competitors and, overall, sales rose 3.8 percent. In the region that includes Asia Pacific, the Middle East and Africa -- where McDonald's is looking to expand its presence
-- the figure edged up just 0.9 percent. Results from Australia and China offset weakness in Japan, where consumers are still reeling from last year's earthquake and tsunami and eating at home more often. For the quarter, McDonald's says it earned $1.35 billion, or $1.32 per share. That's down from $1.4 billion, or $1.35 per share, in the year-ago period. McDonald's said unfavorable currency exchange rates hit its results by 7 cents per share. In the third quarter, the company expects exchange rates to hurt results by 8 cents to 10 cents per share. Total revenue for the quarter was $6.92 billion, up slightly from $6.91 billion a year ago. When stripping out the impact of exchange rates, the company said revenue rose 5 percent. Analysts polled by FactSet on average expected $1.38 per share on revenue of $6.94 billion. Shares of McDonald's, which has 33,000 locations around the world, fell $2.64, or almost 3 percent, to close at $88.94 Monday.
[Associated
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