Unhappy Meal: McDonald's Serves Up Big Charge With Its Loss

McDonald's said it would not buy back stock for at least the first half of the year, adding that the company may end up paying down some of its debt, which has come under review by credit agencies.

The fast-food giant reiterated a commitment to its dollar menu, but said it is not "married" to any item on it. McDonald's is evaluating whether or not its Big 'N Tasty hamburger belongs on the menu.

"The Big 'N Tasty has brought in a lot of customers who would not have otherwise visited us," said Mary Healy, head of investor relations, on the call. "But we have also seen a small drop in sales of some of our signature sandwiches. We need to find a way to prevent people from trading down."

Looking ahead, McDonald's is cautious in its outlook for comparable sales until it sees an improvement in key markets. Last week, the company said it would not give specific forecasts for 2003.

Shares were lately down 45 cents, or 2.9%, at $14.91. They are off more than 50% since last May.