Fast food giant McDonald's has reported its first quarterly loss after taking huge charges to shut down hundreds of badly performing restaurants overseas. It also said expectations of double-digit profit growth were unrealistic.
'Considering the size and nature of our business, a 10-15% earnings per share growth target is not realistic,' said chairman and chief executive Jim Cantalupo in a statement.
McDonald's posted a net loss of $343.8m in the fourth quarter, compared with a profit of $272m in the same period a year earlier. The losses were wider than the company had predicted last month.
Sales, which include McDonald's 30,000 company-owned and franchised restaurants, rose 2% to $10.5 billion. The company took charges of $810.2m in the fourth quarter, largely to cover costs associated with exiting several foreign markets and closing more than 700 stores, mainly in the US and Japan.
The US fast food market has become increasingly competitive as McDonald's, rivals Burger King and Wendy's struggle to maintain market share as consumer tastes change and other fast food options emerge.
