LONDON (ShareCast) - (Sharecast News) - Fast-food giant McDonald's posted quarterly earnings and revenues that fell short of analysts' expectations on Thursday as increased costs weighed on profits.
McDonald's reported a fourth-quarter earnings per share of $2.23 as revenues grew 13% of $6.01bn, shy of the $2.34 and $6.03bn expected on the Street. Fourth-quarter net income was $1.64bn, up from $1.38bn.

The Chicago-based firm's same-store sales improved 12.3% year-on-year and 10.8% on a two-year basis as menu price hikes were implemented to offset a 14% increase in operating costs and expenses.

McDonald's higher costs included wage hikes aimed at attracting and retaining workers and heightened prices for ingredients in menu staples like Big Mac burgers and McNuggets.

Looking forward, McDonald's expects to spend $2.2-2.4bn on capital expenditure in 2022, with roughly half of that money going towards opening more than 1,400 net new restaurants, while the rest will mostly be used to modernise its US businesses.

As of 1435 GMT, McDonald's shares were down 1.39% at $246.37 each.

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