by Michael Tarsala
McDonald's (MCD) posted second-quarter earnings that missed expectations. Shares are down about 3% in late-morning trading.
It's one of the most closely watched stocks by Covestor managers, as it's held in 11 different investment models. Managers including Bill DeShurko of the Dividend and Income Plus model count Mickey Ds among his top 5 holdings.
McDonald's reported earnings of $1.35 billion, or $1.32 a share, down form $1.41 billion, or $1.35 a share last year. Analysts had been expecting earnings of $1.38 a share, according to Bloomberg.
Revenue was roughly flat at $6.92 billion.
Margins pressured results. In particular, operating income fell 2% in the Asia/Pacific, Middle East and Africa region.
Currency was a major factor in the report. Global revenue was roughly flat. Yet without currency effects, revenue growth would have been 5%
Same-store sales (measured at mature restaurants open at least 13 months) rose 3.6%, which was the slowest growth in five quarters.
After gapping lower, shares have settled around the $89 mark at last check. The stock is still well above critical support at the year lows, near $86.
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