McDonald's store traffic falls unexpectedly as diners grow uneasy about economy
Flagging consumer confidence is hurting U.S. demand at McDonald's and other restaurant chains. Last week, rival Chipotle also reported weaker-than-expected same-store sales in the first quarter. Chipotle CEO Scott Boatwright said concern about the economy was the 'overwhelming reason' consumers dined out less often.
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McDonald's has responded by expanding its U.S. value menu, which lets customers buy one item for $1 when they buy a full-priced item. It's also offering its $5 Meal Deal through this summer. That deal was introduced last June and extended several times.
Revenue at the Chicago chain fell 3% to $5.95 billion, short of analysts' forecast of $6.09 billion, according to FactSet.
Net income fell 3% to $1.86 billion. Adjusted for restructuring charges and other one-time items, the company earned $2.67 per share, beating Wall Street projections by a penny.
Shares of McDonald's Corp. fell just over 1% before the opening bell Thursday.
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