McDonald's Beats Estimates, Shares Rise

The fast-food giant earned 31 cents a share before charges in the first quarter.

Author:: TSC Staff
Publish date:: Apr 18, 2002 9:55 AM EDT

McDonald's

earnings fell in the first quarter but managed to eclipse recently lowered analyst estimates.

The fast food giant earned $253.1 million, or 20 cents a share, compared with $378.3 million, or 29 cents a diluted share, a year earlier. Excluding the previously announced charges, McDonald's earned 31 cents a diluted share. Analysts were calling for earnings of 29 cents.

McDonald's has been trying to cope with a series of difficulties including concerns about mad cow disease in Europe and Asia and slowing domestic sales. The company eked out a slight rise in systemwide sales, to $9.7 billion in the first quarter from $9.65 billion a year earlier.

McDonald's took a charge of $43 million to write down some Latin American assets and close restaurants in Turkey, and took a separate $99 million charge to change its accounting for goodwill.

The shares were recently up 5% to $28.54.