McDonald's ekes out profit with value menu

McDonald's Corp. eked out a higher profit in the fourth quarter with the help of its Dollar Menu and the McRib, but the world's biggest hamburger chain also warned that a key sales figure is expected to drop this month.

The negative forecast reflects the intensifying competition and changing dining habits McDonald's is facing. Traditional rivals such as Burger King, Taco Bell and Wendy's have been revamping their menus and posing a bigger threat to the Golden Arches than in recent years.

In addition, people are increasingly heading to chains such as Chipotle and Panera that offer restaurant ...