McDonald's 3rd quarter profit drops 30% as sales slump

Oak Brook-based McDonald's Corp., the world's largest restaurant chain, said third-quarter profit fell 30 percent as U.S. sales slumped for the fourth straight quarter.

Net income dropped to $1.07 billion, or $1.09 a share, from $1.52 billion, or $1.52, a year earlier, the Oak Brook, Illinois-based company said in a statement today. Excluding some items, profit was $1.51 a share. The average of 21 analysts' estimates compiled by Bloomberg was $1.36 a share.

McDonald's, which has been struggling to draw American diners amid steep competition, also is facing consumer backlash in China after a supplier was investigated for changing food expiration dates. Sales at McDonald's U.S. stores open at least 13 months fell 3.3 percent in the third quarter. Analysts estimated a 2.9 percent drop, according to Consensus Metrix.

Revenue dropped 4.6 percent to $6.99 billion, trailing analysts' $7.19 billion projection.

The shares fell as much as 3.2 percent to $88.69 at 7:58 a.m. in early trading in New York. McDonald's slumped 5.6 percent this year through yesterday's close, while the Standard & Poor's 500 Restaurants Index declined 3.8 percent.