McDonald’s net income dips in Q1

Oak Brook, Ill. – McDonald’s Corp. reported net income of $1.2 billion in the first quarter of fiscal 2014, a 5.5% decline from $1.27 billion in the same quarter a year earlier. Total revenues grew 1% to $6.7 billion, from $6.2 billion.

Global same-store sales grew 0.5%, including a 1.7% decline in the U.S. and 1.4% increase in Europe. McDonald’s attributed negative same-store sales in the U.S. to challenging industry dynamics and severe winter weather. Looking ahead, the retailer said the U.S. remains focused on improving the restaurant experience through a continued commitment to operations and service excellence, customer engagement and menu choice to drive sales and profitability.

The retailer expects moderate global same-store sales growth for April 2014. Looking forward, McDonald's is focused on stabilizing key priority markets including the U.S., Germany, Australia, and Japan.

"At McDonald's, we aspire to be our customers' favorite place and way to eat and drink, and our actions are grounded in creating the best overall experience for our customers," said McDonald's president and CEO Don Thompson. "In the near term, we are prioritizing our efforts around those elements of the restaurant experience that are most impactful, offering the best food and beverage options and delivering outstanding service. For the long term, we are focused on more effectively leveraging consumer insights to guide our global growth priorities of optimizing our menu, modernizing 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."

Login or Register to post a comment.