Salomon Smith Barney cut estimates on McDonald's (MCD

).

Analyst Mark Kalinowski says although expectations for McDonald's to lower its EPS guidance were highly prevalent on the Street, the magnitude of the shortfall still is surprising. Factors cited by McDonald's are not anything unexpected:

consumer concerns regarding European beef supply, increasing

costs, weak economies (such as Australia), and difficult comparisons caused by strong marketing promotions in 2000. The company lowered its $1.46 2001 EPS estimate to $1.40, and cut the $1.63 2002 estimate to $1.57.