McDonald's Shares Decline on Flat Monthly Comparable Sales
McDonald's (NYSE: MCD) reported relatively flat global comparable sales for July, citing a weak economy as a key setback. Shares fell around 3.3 percent in premarket trading following the news.
Positive factors for the month included McDonald's breakfast and McCafe Frappe line-ups, according to the company. However, these factors were not strong enough to bring positive monthly comparable sales.
"We are committed to driving the business over the long-term by executing our proven Plan to Win strategy, despite softer global comparable sales in July," said CEO Don Thompson in a statement.
On March 21, it was announced that former CEO Jim Skinner was retiring. Since that announcement, shares of McDonald's have declined more than 10 percent, including Wednesday's premarket trading. During the same period, shares of competitor Yum! Brands (NYSE: YUM) fell around 6 percent.
McDonald's reported second-quarter earnings per share that missed analyst estimates on July 23. At that point, Thompson blamed "persistent economic headwinds," and projected that the company would see positive global comparable sales for July.
The company is expected to release August sales on September 11.
Disclosure: At the time of this writing, I did not own shares of any companies mentioned in this post.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.