CHICAGO - McDonald's Corp. posted its second-ever loss Tuesday - its first in nearly five years - losing $711.7 million in the second quarter because of a hefty one-time charge.
For the quarter ending June 30, the world's largest restaurant chain said its net income swung to a loss of 60 cents per share. That's compared to a second-quarter profit of $834.1 million or 67 cents per share, a year earlier.
The chain restaurant announced earlier this month it would report a loss related to a licensing agreement in Latin America and the Caribbean.
McDonald's only other quarterly loss, caused by a drawn-out sales slump, was during the fourth quarter of 2002.
Excluding the non-cash impairment charge of $1.6 billion relating to the sale of some Latin American operations, the Oak Brook-based company said its net income grew about 4 percent to $869.9 million, or 71 cents per share.
"We continue to increase our relevance to busy consumers by delivering choice, variety and convenience that our customers have come to expect from McDonald's," Chief Executive Jim Skinner said in a statement. "Our business around the world is strong, and the energy, alignment and commitment behind enhancing the McDonald's brand have never been better."
Meanwhile, the company said Matthew Paull, its 55-year-old chief financial officer, would retire.
McDonald's said Paull, who joined the company in 1993, would stay with McDonald's at least through the end of the year before pursuing a teaching career. A search for his successor is expected to take several months.
Revenue climbed 12 percent to $6 billion, from $5.36 billion, spurred by strong breakfast sales and robust business in stores open at least a year.
On average, analysts surveyed by Thomson Financial forecast earnings of 71 cents per share and revenue of $5.9 billion.
Those forecasts typically exclude one-time items.
In April, McDonald's announced a plan to cede control of 1,600 restaurants in 18 Latin American and Caribbean countries in an effort to strengthen profit. While the deal includes a $1.31 per share charge, it reduces the company's financial exposure in a challenging region and will net McDonald's about $700 million in cash, which it said will be used to increase share buybacks and dividends.
McDonald's said Tuesday that it repurchased $664 million of its stock during the quarter.
McDonald's shares fell 52 cents to $51.98 in midday trading Tuesday.
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