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Mad cow hurts McDonald's
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April 19, 2001: 9:32 a.m. ET
Restaurant chain optimistic about 2001, though beef scare hurts 1Q results
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NEW YORK (CNNfn) - McDonalds Corp. said Thursday profits fell 16 percent in the first quarter, hurt by concerns about the safety of the beef in its hamburgers, but meeting lowered forecasts on Wall Street.
McDonald's, the world's largest restaurant chain, earned $378 million, or 29 cents a diluted share, down from $451 million, or 33 cents a share, a year earlier.
Analysts had forecast earnings of 29 cents a share on average, according to First Call, which tracks Wall Street forecasts.
The consensus forecast was lowered from 32 cents a share in mid-March, when McDonald's warned that concerns about mad cow disease and foot-and-mouth disease would cause it to miss that mark.
Nevertheless, McDonald's said it is "cautiously optimistic" that results will improve in 2001.
"In Europe, we are optimistic that lingering concerns about beef will continue to lessen as the year progresses," Chairman and CEO Jack Greenberg said. "We continue to educate our European customers about McDonald's high food safety and quality standards."
McDonald's reaffirmed its previous guidance of earnings per share growth in a range of 6 to 10 percent for the full year 2001.
The company also said it plans to add 1,500 to 1,600 new restaurants in 2001.
The Oak Brook, Ill.-based company reported system-wide sales -- including franchised and company-owned restaurants -- of $9.65 billion, up from $9.51 billion a year earlier. Total revenue rose 5 percent to $3.5 billion from $3.3 billion in the year-earlier period.
McDonald's (MCD: up $0.26 to $27.75, Research, Estimates) stock is one of 30 in the Dow Jones industrial average. 
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