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McDonald's reports positive results in 'challenging market'

23 | 07 | 13

McDonald's has reported positive financial results for the second quarter of 2013, but warned the market remains "challenging". 

The fast food chain saw its global sales increase by one per cent compared to the same period last year, while its revenues were up by two per cent. This has contributed to operating profit growth of two per cent.

McDonald's president and chief executive Don Thompson said: "McDonald's results for the quarter reflect our efforts to strengthen our business momentum for the long-term."

The company's European sales actually decreased by 0.1 per cent in the second quarter, mainly due to poor performance in France and Germany. However, this was counterbalanced by solid sales in the UK and Russia. 

McDonald's said it aims to boost its performance in Europe through the introduction of "enhanced premium" beverage and menu items, everyday affordability and an improved restaurant experience.

Despite the drop in sales, the chain's operating profit on the continent actually increase by five per cent, which was a major driver behind its growth as a whole.

Mr Thompson stated: "While the informal eating out market remains challenging and economic uncertainty is pressuring consumer spending, we're continuing to differentiate the McDonald's experience by uniting consumer insights, innovation and execution."

The McDonald's chief said sales in July are not expected to experience much of a rise and this pattern could continue for the rest of the year. However, he claimed the fact the chain has survived through numerous challenging periods in its history, means he remains confident it will experience sustained growth in the long-term. 

While Mr Thompson appears to be concerned about the immediate future of the eating out market, a recent report from the NPG Group forecast quick service restaurants, such as McDonald's, are set to benefit from an increase in lunchtime trade in the UK - which will be of interest to catering equipment firms.

Afternoon sales declined as a result of the recession, but director of business development at the market research firm Guy Fielding claimed it could be the next "day part" to undergo a recovery.ADNFCR-16001031-ID-801615667-ADNFCR

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