McReboot

April 22, 2015 09:17 AM

McDonald's Corp is developing a new turnaround plan to improve sales and profits as the company struggles to regain its footing in the highly competitive fast-food market. 

Shares of the world's biggest restaurant chain by sales rose 2.5% to $97.25 in premarket trading on Wednesday.

In its first quarterly results under new Chief Executive Steve Easterbrook, McDonald's global comparable sales at restaurants open at least 13 months fell 2.3% in the first quarter ended March 31.

Easterbrook will share initial details of the turnaround plan on May 4, the company said in a statement.

McDonald's is fighting to recover from food scandals in China and Japan and is facing tough competition at home in the United States from more nimble chains ranging from Chipotle Mexican Grill Inc  to Burger King.

In the United States, McDonald's promotions failed to attract customers. U.S. comparable sales fell 2.6% in the quarter.

Analysts on average had estimated a 1.8% fall in the company's global same-store sales and a 2.1% fall in the United States, according to analysts polled by research firm Consensus Metrix.

April global comparable sales are expected to be negative, McDonald's said.

Net income fell 32.6% to $811.5 million, or 84 cents per share. Excluding items, McDonald's earned $1.01 per share.

Analysts on average had expected a profit of $1.06 per share, according to Thomson Reuters I/B/E/S.

Revenue fell 11% to $5.96 billion, but were largely in line with analysts' average expectation.

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