Matthew DiFrisco, Lazard Capital Markets senior restaurant analyst, discusses what may have caused the fast-food restaurant to miss its same-store sales target and why he maintains a "buy" rating on the stock and lowered its price target by one dollar.
By msnbc.com staff
Shares of McDonald?s (MCD) were edging lower Friday after the fast-food giant?said economic difficulties around the world and rising costs are weighing on quarterly results.
The restaurant chain said May sales rose 3.3 percent. But that figure was lower than the 4.6 percent analysts had expected.
May sales missed estimates in the company?s two biggest markets -- Europe and the United States. They fell in Asia Pacific, Middle East and Africa, due to declines in Japan and China, the company said.
The world's biggest hamburger chain has been more resilient to economic difficulties than most of its competitors, but a resurgence of the European debt crisis in May and a cooling economy in China have taken their toll on the company?s results.
Foreign currency rates and higher costs, due in part to preparations for the summer Olympics in London, also are expected to weigh on earnings this quarter, McDonald's said.
Reuters contributed to this report.
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