January 30, 2019 / 4:50 PM / 9 months ago

McDonald's expects labor costs, strong dollar to hit earnings this year

FILE PHOTO - A sign for the U.S. fast food restaurant chain McDonald's is seen outside one of their restaurants in Sint-Pieters-Leeuw, near Brussels, Belgium February 14, 2018. REUTERS/Yves Herman/File Photo

(Reuters) - McDonald’s Corp (MCD.N) expects earnings per share this year to be pressured by higher labor and restaurant remodeling costs and the impact of a stronger dollar, the fast-food chain said on Wednesday.

Shares in the fast-food chain trimmed gains after the warning by McDonald’s executives during a conference call with analysts, and were last higher by 0.5 percent.

The company reported better-than expected profit and comparable sales for the fourth quarter earlier on Wednesday. [nL3N1ZU4Q6]

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar

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