McDonald's has first loss

CHICAGO (AP) -- McDonald's Corp. warned that the protracted sales slump that already has forced it to change CEOs and reverse expansion plans will result in the first quarterly loss in its 47-year history.
It also confirmed that a price war with rival Burger King hasn't paid off the way the company hoped after two years of wrestling with a crowded U.S. restaurant market, mad-cow disease scares overseas, marketing misfires and mounting service complaints.
McDonald's said it expects to incur after-tax charges of at least $390 million in the fourth quarter to pay for the restructuring moves it announced last month, including closing underperforming restaurants and pulling out of several countries. That will result in a net loss of 5 cents to 6 cents per share.
Excluding the charges, the Oak Brook, Ill.-based chain expects earnings to be 25 cents to 26 cents per share -- well short of the 31-cent estimate of Wall Street analysts surveyed by Thomson First Call.
McDonald's shares, which traded at nearly $50 three years ago, sank $1.39 Tuesday to $15.99.