McDonald's Corp, the world's largest restaurant chain, said earnings will fall for a sixth quarter because sales were hurt by a decline in the euro and fears of "mad-cow" disease in Japan.
First-quarter net income will be about US$0.18 to 19 cents a share, spokeswoman Anna Rozenich said. The forecast includes a reduction of US$0.8 for an accounting change, she said. A year ago, McDonald's had net income of US$378.3 million, or US$0.29.
Chief Executive Jack Greenberg has cut profit forecasts in four of the past five quarters for McDonald's, whose stock has dropped 31 percent since he became chairman in May 1999. This quarter, a 5.3 percent decline in the euro from a year ago reduced sales in Europe, McDonald's biggest market after the US, while consumers bought fewer hamburgers in Japan.
"Every quarter they have some factor affecting their business," said money manager Bill Cottrell of Ohio State Teachers Retirement System, which owns 2.5 million McDonald's shares and manages US$52 billion. "It's frustrating."
McDonald's fell US$1.05, or 3.7 percent, to US$27.65. The stock's decline since Greenberg became chairman is about double the drop in the Standard & Poor's 500 Index. The company, based in Oak Brook, Illinois, has more than 30,000 restaurants in 121 countries.
Sales were little changed at US$6.2 billion in January and February.
Sales at McDonald's Japanese unit, which generates about 6 percent of the company's profit, have fallen after three cows were found infected with ``mad-cow'' disease.
"Concerns about the safety of Japanese beef continue to impact sales, even though McDonald's Japan only uses beef from Australia and New Zealand," Greenberg said in a statement.
AIR DEFENSE: The Norwegian missile system has proved highly effective in Ukraine in its war against Russia, and the US has recommended it for Taiwan, an expert said The Norwegian Advanced Surface-to-Air Missile Systems (NASAMS) Taiwan ordered from the US would be installed in strategically important positions in Taipei and New Taipei City to guard the region, the Ministry of National Defense said in statement yesterday. The air defense system would be deployed in Taipei’s Songshan District (松山) and New Taipei City’s Tamsui District (淡水), the ministry said, adding that the systems could be delivered as soon as the end of this year. The US Defense Security Cooperation Agency has previously said that three NASAMS would be sold to Taiwan. The weapons are part of the 17th US arms sale to
SERIOUS ALLEGATIONS: The suspects formed spy networks and paramilitary groups to kill government officials during a possible Chinese invasion, prosecutors said Prosecutors have indicted seven retired military officers, members of the Rehabilitation Alliance Party, for allegedly obtaining funds from China, and forming paramilitary groups and assassination squads in Taiwan to collaborate with Chinese troops in a possible war. The suspects contravened the National Security Act (國家安全法) by taking photos and drawing maps of key radar stations, missile installations and the American Institute in Taiwan’s headquarters in Taipei, prosecutors said. They allegedly prepared to collaborate with China during a possible invasion of Taiwan, prosecutors said. Retired military officer Chu Hung-i (屈宏義), 62, a Republic of China Army Academy graduate, went to China
INSURRECTION: The NSB said it found evidence the CCP was seeking snipers in Taiwan to target members of the military and foreign organizations in the event of an invasion The number of Chinese spies prosecuted in Taiwan has grown threefold over a four-year period, the National Security Bureau (NSB) said in a report released yesterday. In 2021 and 2022, 16 and 10 spies were prosecuted respectively, but that number grew to 64 last year, it said, adding that the Chinese Communist Party (CCP) was working with gangs in Taiwan to develop a network of armed spies. Spies in Taiwan have on behalf of the CCP used a variety of channels and methods to infiltrate all sectors of the country, and recruited Taiwanese to cooperate in developing organizations and obtaining sensitive information
BREAKTHROUGH: The US is making chips on par in yield and quality with Taiwan, despite people saying that it could not happen, the official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has begun producing advanced 4-nanometer (nm) chips for US customers in Arizona, US Secretary of Commerce Gina Raimondo said, a milestone in the semiconductor efforts of the administration of US President Joe Biden. In November last year, the commerce department finalized a US$6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona. “For the first time ever in our country’s history, we are making leading edge 4-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo said, adding that production had begun in recent
RSS