(Reuters) – McDonald’s Corp
Sales at U.S. restaurants open at least 13 months fell 1.7 percent in the fourth quarter. Analysts on average had expected a fall of 2.1 percent, according to research firm Consensus Metrix.
Global same-restaurant sales fell 0.9 percent compared with average analyst estimate of a 1.5 percent fall.
Shares of the world’s biggest restaurant chain were little changed in premarket trading on Friday.
McDonald’s set a capital spending target of about $2 billion for this year as it looks to recover from a food scandal in China and fend off intense competition in the United States.
International sales plunged after the food scare, a shortage of potatoes for its french fries in Venezuela and the forced temporary shutdown of some of its outlets in Russia.
Sales in China fell sharply after a supplier was found to be using expired and contaminated chicken and beef in July.
More recently, customers in Japan said they found items such as plastic and even a tooth in their food.
The company also had to offer restricted portions of french fries to customers in Japan last month as a protracted labor dispute at U.S. West Coast ports contributed to long delays in imports.
In the United States, McDonald’s has been losing customers to fast-casual chains such as Chipotle Mexican Grill
McDonald’s net income fell to $1.1 billion, or $1.13 per share, in the quarter ended Dec. 31 from $1.40 billion, or $1.40 per share, a year earlier.
Revenue fell 7.3 percent to $6.57 billion.
Analysts on average had expected a profit of $1.22 per share and revenue of $6.68 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Kirti Pandey)
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