News Column

McDonald's profits take a dive as German sites perform poorly

July 23, 2014

NASSOS STYLIANOU



McDONALD''S shareholders were left with a sour taste yesterday, as another disappointing earnings report sent shares in the hamburger chain tumbling by more than two per cent in early trading.


The fast-food giant said its profit for the second quarter fell one per cent in the three months to June, while same store sales dropped 1.5 per cent as guest traffic in the US, where the company gets 30 per cent of its revenue, failed to grow compared to the prior year.


Europe also registered a surprise slide for McDonald''s. Same store sales fell one per cent, despite expectations for a 0.7 increase. This was partly down to poor quarterly performance in Germany.


By contrast, the UK and France recorded solid sales and operating incomes results for the quarter, according to the company.


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Source: City A.M. (UK)


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