McDonald's said its third-quarter net income fell nearly 4% as the stronger dollar hurt international results.
The chain is also facing tough competition in the US.
The world's largest hamburger chain with 33,000 locations worldwide has thrived in boom and bust times by selling cheap eats and constantly updating its menu.
But global economic pressures and intensifying competition is wearing at the company, which makes two thirds of its sales overseas.
Chief executive Don Thompson said those trends are likely to continue to pressure its revenue and net income results in the near term. He said revenue in stores open at least 13 months, a key restaurant metric, is looking negative so far in October.
McDonald's said Friday its net income fell to $1.46 billion, or $1.43 a share. That compares with net income of $1.51 billion, or $1.45 per share last year. Analysts had expected net income of $1.47 per share.
The company said that the stronger dollar hurt net income by eight cents per share. When the dollar is strong, international sales translate into fewer dollars in the US.
Revenue was nearly flat at $7.15 billion from $7.17 billion last year. Analysts had expected revenue of $7.17 billion.
Revenue in outlets open at least 13 months rose 1.9% globally, including a 1.2% rise in the US, where the company said it faced "broad competitive activity."
McDonald's is facing stiffer competition from newer chains like Panera Bread, which offers higher-end food in a fast casual atmosphere. Long-time rivals such as Wendy's and Burger King Worldwide are also reworking their menus, renovating restaurants and launching new ad campaigns to win back customers.
In Europe, where McDonald's does 40% of its business, revenue in stores open at least 13 months rose 1.8%, hurt by weaker customers numbers.
In Asia/Pacific, the Middle East and Africa, the measure rose 1.4% as the company promoted limited-time offers and traffic increased.