NEW YORK (TheStreet) -- Shares of McDonald's Corp. (MCD) are lower by -1.56% to $96.03 on heavy trading volume as the company reported second quarter profit declined 1%, as the fast-food company continues to struggle to connect with customers, a trend the company indicated isn't likely to improve soon, the Wall Street Journal reported.
McDonald's said it expects sales at global restaurants opened more than a year to be negative this month. The company also said that it expects full-year global same-store sales to be relatively similar to the lackluster performance seen since the start of the year through June, amid a lack of material changes to the operating environment., the Journal added.
The company reported a second quarter profit of $1.39 billion, or $1.40 a share, compared with $1.4 billion, or $1.38 a share, a year earlier. The per-share figure was higher, despite lower total earnings, because the company's number of shares outstanding declined, the Journal noted.
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Revenue was up 1% to $7.18 billion.
Analysts polled by Thomson Reuters had expected earnings of $1.44 a share and revenue of $7.29 billion.
TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."