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McDonald's reports drop in Q2 profit

  • McDonald's has reported lower-than-expected quarterly profits due to a weakening global economy and the impact of a stronger dollar.

    Shares in the fast food giant fell $2.64, or 2.9 percent, to close at $88.94 on the New York Stock Exchange on Monday.

    Global sales at restaurants open at least 13 months slowed during the month of June, increasing 4.4 percent compared to 7.7 percent a year earlier.

    Meanwhile, net income fell 4.5 percent to $1.35 billion.

    The impact of the stronger dollar shed 7 cents a share from earnings in the latest quarter.

    Higher taxes and costs related to its Olympics sponsorship also hit profits.

    Total revenue rose slightly to $6.92 billion, up from $6.91 billion a year earlier.