McDonald's (NYSE: MCD) reported fiscal-fourth-quarter and full-year earnings before the market opened today that left a lot to be desired. Shares of McDonald traded down about 3% in early trading on the news. The results highlight falling sales both in the U.S. and abroad as increased competition eats away at McDonald's economic moat.
For its fourth quarter, the fast-food chain posted a profit of $1.40 per share, which was a penny better than analysts had expected. However, revenue inched up just 2% to $7.09 billion in the quarter. Analysts on average were looking for quarterly revenue of $7.11 billion. Quarterly comp sales were also stale, as McDonald's stores open at least a year suffered declines in almost every category. Overall, same-store sales fell 1.4% in Q4, while comps out of McDonald's Asia-Pacific region suffered a 2.4% decline in the period.
McDonald's full-year results weren't much better, though they were in line with analyst forecasts. The company generated earnings per share of $5.55, up 4% from the year prior. McDonald's annual revenue clocked in at $28.1 billion.
Looking ahead, McDonald's CEO Don Thompson expects global comparable sales to be flat in January as the company struggles with more competition and ongoing economic headwinds.