McDonald's posts smaller-than-expected fall in comparable sales

Sales at U.S. restaurants open at least 13 months fell 1.7 percent in the fourth quarter. Analysts on average had expected a fall of 2.1 percent, according to research firm Consensus Metrix.

Global same-restaurant sales fell 0.9 percent compared with average analyst estimate of a 1.5 percent fall.

The world's biggest restaurant chain set a capital spending target of about $2 billion for this year as it looks to recover from a food scandal in China and fend off intense competition in the United States.

McDonald's international sales plunged after the food scare, a shortage of potatoes for its french fries in Venezuela and temporary shutdown of some of its outlets in Russia due to geopolitical tension.

In the United States, the company has been losing customers to fast-casual chains such as Chipotle Mexican Grill and Shake Shack Inc .

McDonald's net income fell to $1.1 billion, or $1.13 per share, in the quarter ended Dec. 31 from $1.40 billion, or $1.40 per share, a year earlier.

Revenue fell 7.3 percent to $6.57 billion.

Analysts on average had expected a profit of $1.22 per share and revenue of $6.68 billion, according to Thomson Reuters I/B/E/S.

McDonald's shares were up about 1 percent at $91.51 in premarket trading on Friday.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Kirti Pandey)

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