(By Balaseshan) McDonald's Corp. (NYSE:MCD) shares fell 2.00 percent in premarket trading on Monday after the fast food chain reported a 4% decline in quarterly earnings due to the impact of foreign currency translation.
Earnings decreased to $1.35 billion or $1.32 per share for the second quarter from $1.41 billion or $1.35 per share in the year-ago quarter. Sales marginally rose 0.2 percent to $6.92 billion.
Excluding currency translation, profit rose 1 percent while earnings per share increased 3 percent. Revenue grew 5 percent.
Analysts, on average, polled by Thomson Reuters expected earnings of $1.38 per share on sales of $6.94 billion.
Global comparable sales registered a 3.7 percent gain, with the U.S. posting 3.6 percent comps growth. Comparable sales at Europe and Asia/Pacific, Middle East and Africa's (APMEA) increased 3.8 percent and 0.9 percent, respectively.
In the U.S., the company attributed the top-line growth to the ongoing popularity of McDonald's classic core favorites and new additions to the McCafe beverage line-up, despite broad competitive activity.
As the company begins the third quarter, McDonald's expects comparable sales for the month of July to be positive, but less than second quarter.
The stock, which has been trading between $82.01 and $102.22 over the past year, ended Friday's regular session at $91.58.