(Reuters) – McDonald’s Corp (MCD.N) reported stronger-than-expected December sales, but its shares fell on investor concerns that quarterly profit may have beat expectations only because of income that was not related to its operations.
Chief Financial Officer Pete Bensen said investors remain cautious about consumer spending. He added that as a percentage of sales, margins declined 30 basis points to 18.7 percent during the fourth quarter as higher costs for food and other items offset sales strength.
He also said that ongoing austerity measures in Europe have not hurt sales there and that “we’re really seeing no change in customer behavior.”
Shares of the world’s biggest hamburger chain were down 1.4 percent to $99.48 in morning trading on Tuesday.
McDonald’s reported fourth-quarter profit of $1.38 billion, or $1.33 per share, up from $1.24 billion, or $1.16 a share, a year earlier. Analysts on average expected $1.30 a share, according to Thomson Reuters I/B/E/S.
Edward Jones analyst Jack Russo said results from the latest quarter were helped by 3 cents per share of non-operating income.
“So it really
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