(RTTNews) - Thursday, Food service retailer McDonald's Corp. (MCD: News ) posted a 8% decline in second-quarter profit and a 7% drop in the quarterly sales, primarily daunted by negative impact from foreign currency translation.

The Oak Brook, Illinois-based company's second-quarter profit totaled $1.09 billion, down 8% from $1.19 billion earned a year ago. On a per share basis, earnings dropped 6% to $0.98 from $1.04 in the same quarter of last year.

On average, 18 analysts polled by Thomson Reuters expected the company to post earnings of $0.97 per share for the quarter. Analysts' estimate typically exclude special items.

The world's leading hamburger chain, a Dow component noted that the latest quarter results included $0.09 per share of negative impact from foreign currency translation and $0.01 per share of incremental income related primarily to the sale of Redbox Automated Retail, LLC and also related to the developmental license transaction in Indonesia. The year-ago results encompassed a $0.10 per share gain from the company's sale of its minority interest in Pret A Manger.

Quarterly revenues amounted to $5.65 billion, a decline of 7% from the previous year's revenue of $6.08 billion, and fell shy of fifteen Wall Street analysts' consensus revenue estimate of $5.72 billion for the quarter.

Global comparable sales increased 4.8%. McDonald's U.S. delivered 3.5% rise in comparable sales for the second quarter and drove operating income up 5%. McDonald's Europe generated 6.9% growth in second quarter comparable sales led by performance in the U.K., France and Russia. In Asia/Pacific, Middle East and Africa or APMEA, Australia led the segment's second quarter operating income increase of 34% in constant currencies. Comparable sales at APMEA were up 4.4%.
For the six-month period, the company reported net income of $2.07 billion or $1.85 per share, compared to $2.14 billion or $1.85 per share in the prior-year period. Revenues for the year-to-date period descended 8% to $10.7 billion from $11.7 billion in the comparable period of the previous year.

Looking ahead, the company expects to report July consolidated comparable sales similar to or better than June.

Among McDonald's rivals, Yum! Brands Inc. (YUM: News ) reported second-quarter net income of $303 million or $0.63 per share, an increase from last year's $224 million or $0.45 per share in the year-earlier quarter. Total revenues for the quarter declined 7% to $2.48 billion from $2.66 billion in the same quarter of last year.

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