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Big Mac Miss!

Citing consumer spending and economic uncertainty, McDonald's Corporation NYSE: (MCD) fell short on earnings expectations. The company reported Q2 EPS of
$1.38 compared to analyst’s estimate of $1.40. In addition, the company also
missed on revenues, expected revenue was $7.09 billion vs. reported revenue of
$7.08 billion. Comparable store sales were down 0.1% in Europe and flat in
Asia, Middle East, and Africa.
Competitors are gaining on the company’s value menu. With the likes of Burger King, Wendy’s, and Taco Bells offering value variety menus, it’s getting harder for customers to differential their purchasing power among the menus. It is unlikely that the current global economic picture will change anytime soon, which is not in the favor of the industry.