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McDonald's suffers first-ever lossesBy Vanessa Valkin in New YorkPublished: January 23 2003 15:56 | Last Updated: January 23 2003 15:56
McDonalds
McDonald's, the fast food burger chain, announced its first-ever quarterly loss on Thursday from a large restructuring charge and from restaurant closures.
The total charge for the fourth quarter was $810.2m which was above the company's initial estimates. In December the company announced a $435m charge but the closure of another 517 restaurants and the shutting down of a large technology project added to costs.
For the quarter, the company reported a net loss of $343.8m, or 27 cents a share, compared to last year's profit of $271.9m, or 21 cents a share.
Total sales for the quarter were $10.5bn, up 2 per cent, and $41.5 bn for the year, also up 2 per cent.
For the full year, net income was $893.5m or 70 cents share. Jim Cantalupo, the newly elected chief executive, said in a statement that : "Considering the size and nature of our business, a 10-15 per cent eanrings per share growth target is not realistic." McDonald's has said it will no longer give quarterly guidance.
The stock was last trading down 3.26 per cent at $14.86 in New York.
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