Stronger dollar hurts McDonald's 3Q results

• Fast food chain fights weak global economy, competition
• Stronger dollar trimmed net income of $1.43 by 8 cents a share
• 3Q revenue nearly flat at $7.15B vs. $7.17B a year ago

McDonald's didn't give investors a happy meal Friday, adding to the string of disappointing third-quarter earnings reports investors have been handed.

Shares of the world's largest fast-food chain (MCD) fell more than 3% after the company reported disappointing quarterly results.

The company's quarterly earnings fell 3.3% to $1.46 billion or $1.43 a share, as growth at stores open at least a year expanded by just 1.2%, slowest growth in years.

Meanwhile, the company's revenue came in flat at $7.2 billion. Increased competition from other restaurants using discounting left McDonald's open for attack.

The stronger dollar also hurt the company's international profit. Currency conversions hurt net income by 8 cents per share as sales in foreign currencies translate into fewer dollars back home.

The disappointing results come just months after CEO Don Thompson took the helm of the company in July. McDonald's subpar profit follows Google and Microsoft in disappointing investors with third-quarter results.

So far, though, results for the quarter at large U.S. companies have been coming in ahead of low expectations. Analysts expected companies in the Standard and Poor's 500 index to report lower earnings coming into the quarter.

Now, expectations have risen a bit as analysts are calling for 0.09% growth, which is still the lowest growth rate since the third quarter of 2009, says S&P Capital IQ.

So far, 104 companies in the S&P 500 have reported earnings, and of those, 62% have beaten expectations and just 23% missed them. Four companies have provided investors with guidance about the fourth quarter, though, and all of those forecasts have been disappointing.

Analysts, however, remain bullish on McDonald's, which has 33,000 locations worldwide. The company is expected to see earnings rise 2.7% in 2012 and 10.2% in 2013, says S&P Capital IQ. Analysts are maintaining an average "outperform" rating on the stock, which has fallen roughly 10% this year.

CEO Thompson said: "The McDonald's System remains focused on building the business for the long term."

McDonald's is facing stiff competition from chains like Panera Bread, which offers higher-end food in a fast casual atmosphere. Long-time rivals, such as Wendy's and Burger King Worldwide, are also reworking their menus, renovating restaurants and launching ad campaigns to win back customers.

Contributing: Associated Press