Burger giant's sales hit by winter weather

HAMBURGER chain McDonald's Corp reported weaker-than-expected December sales at established US and European restaurants as poor weather led to a fall in demand.

By The Newsroom

Published 25th Jan 2011, 08:57 BST

Updated 25th Jan 2011, 08:57 BST

McDonald's said its food costs would rise in 2011. The company also reported a fourth-quarter profit in line with expectations.

McDonald's said global sales at restaurants open at least 13 months rose 3.7 per cent overall in December.

They gained 2.6 per cent in the United States, slid 0.5 per cent in Europe and rose 8.9 per cent for Asia-Pacific, Middle East and Africa.

Wall Street had expected December same-restaurant sales to be up 3.9 per cent in the United States, up 3.4 per cent in Europe and gain 5.7 per cent in APMEA, according to Janney analyst Mark Kalinowski.

For January, the company expects global same-restaurant sales to increase in a range of four per cent to five per cent.

Net income in the fourth quarter rose to $1.24bn (777.72m), or $1.16 a share, compared with $1.22bn, or $1.11 a share, in the year-earlier quarter.

The profit matched what most analysts had been expecting.

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