McDonald's Misses on Earnings, Plans to Rein in Capital Spending

McDonald's reported quarterly earnings and revenue that missed analysts' expectations on Friday but posted a smaller-than-expected decline in U.S. and global same-store sales. The fast food chain reported global quarterly same-store sales that fell 0.9%, less than the 1.5% decline expected by research firm Consensus Metrix. U.S. quarterly same-store sales also fared better than expected, dropping 1.7% instead of the 2.1% estimate. McDonald's announced it set a capital spending target of about $2 billion this year, its lowest capital budget in more than five years, as it targets fewer openings in its most challenged markets. Chief financial officer Pete Bensen called the lower level of capital spending 'prudent' as the company works to regain business momentum and improve sales and profitability.