McDonald's shares drop after rare profit miss

Video Credit: Reuters Studio
Published on October 22, 2019 - Duration: 01:07s

McDonald's shares drop after rare profit miss

McDonald's reported a quarterly profit that missed Wall Street estimates for the first time in two years as it invested heavily in sprucing up U.S. outlets and speeding up delivery, sending its shares down 4 percent.

Yahaira Jacquez reports.

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McDonald's shares drop after rare profit miss

Shares of McDonald's dropped on Tuesday after the company reported a quarterly profit that missed Wall Street expectations.

It's the burger chain's first miss in two years.

And it comes as McDonald's invests aggressively in revamping its 14,000 restaurants in the U.S. to include digital ordering kiosks, mobile ordering and Pay and Pick-up services.

And sales did rise - 4.8% in the third quarter.

But that fell below the nearly 5.2% growth analysts expected, according to IBES data from Refinitiv.

This comes as competition in the restaurant space is intensifying.

With rival fast-food chains challenging McDonald's dominance with value meals and plant-based food options.

Burger King and KFC for example jumped on the plant-based burger trend faster than McDonald's, which is currently testing a burger using Beyond Meat patties in Canada.

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