McDonald’s reports profit fall in 2014 Q1

McDonald’s has reported a lower profit for 2014 Q1 after sales in its US restaurants fell by more than expected.

McDonald’s said group like-for-like sales had risen 0.5% overall, but US sales had fallen 1.7% due partly to the severe winter weather.

Analysts had forecast a 1.4% drop in like-for-like US sales.

The sales drop meant net income fell to $1.2 billion from $1.27 billion a year earlier.

In Europe, comparable sales rose 1.4% in the first quarter with a positive performance in the UK, France and Russia.

However, McDonald’s said sales in Germany, Japan and Australia were weaker.

The company said it was focused on stabilizing its performance in these markets, as well as the US.

McDonald’s, which is the world’s largest fast food business, has been battling against weak economic growth in its home US market.

The company’s chief executive has previously said he plans to strengthen the chain’s appeal to its less well off customers.

McDonald’s also intends to offer new higher-priced products to keep drawing in customers who are prepared to spend more.