Thursday, July 23, 2009

McDonalds loses 7% on US Dollar move
July 23 (Bloomberg) -- McDonald's Corp., the world's largest restaurant company, dropped the most in nine months in New York trading after second-quarter revenue declined more than analysts projected.

McDonald's fell $3.12, or 5.3 percent, to $55.70 at 2:41 p.m. in New York Stock Exchange composite trading. The shares had the biggest intraday decline since Oct. 24 after losing 5.4 percent this year before today.

Slowing consumer spending and a stronger U.S. dollar contributed to a 7 percent drop in revenue, to $5.65 billion, the company said today in a statement. Global sales at established stores rose 4.8 percent, less than analysts' projected, as visits declined in countries including China.

Foreign Exchange

Currency translation trimmed profit 9 cents a share in the quarter, the company said. McDonald's now expects foreign exchange to cut full-year earnings by 21 cents a share, and forecast it will reduce third-quarter profit by 6 cents, Chief Financial Officer Peter Bensen said.

The Dollar Index, which the ICE futures exchanges uses to track the dollar against the currencies of six major U.S. trading partners, including the euro, British pound and yen, rose more than 10 percent in the 12 months through June.