McDonald's Earnings Disappoint, New Global Initiatives on Horizon

Shares of McDonald's are falling in Tuesday trading after the fast food chain reported a 28 percent decline in quarterly earnings and global comparable sales that fell 3.3 percent. McDonald's President and CEO Don Thompson said results were pressured by a higher effective tax rate, unusual events in the Asia/Pacific, Middle East, Africa and Europe regions and under-performance in the U.S.. Going forward, the company announced a new global approach designed to increase its relevance with customers and drive traffic. It will focus on enhancing the customer experience and implementing a digital strategy with new payment options like Apple Pay. Morningstar equity research director R.J. Hottovy called the initiatives 'appropriate,' but said 'investors should not expect an overnight turnaround.'