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McDonald's says eating-out market remains 'challenging' | McDonald's says eating-out market remains 'challenging' |
(about 3 hours later) | |
McDonald's says the "informal eating-out market remains challenging" and that this will affect its results for the rest of the year. | McDonald's says the "informal eating-out market remains challenging" and that this will affect its results for the rest of the year. |
The comment accompanied its second quarter earnings, which missed analysts' expectations. | The comment accompanied its second quarter earnings, which missed analysts' expectations. |
In the three months to June, the company earned $1.4bn (£910m), an increase from last year's $1.35bn but less than Wall Street had expected. | In the three months to June, the company earned $1.4bn (£910m), an increase from last year's $1.35bn but less than Wall Street had expected. |
McDonald's said that global sales at established restaurants edged up 1%. | McDonald's said that global sales at established restaurants edged up 1%. |
Chief executive Dan Thompson said: "While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat. | |
"Based on recent sales trends, our results for the remainder of the year are expected to remain challenged." | |
Europe saw a 0.1% decline as a solid sales performance in the UK and Russia failed to offset a decline in France and Germany. | |
UK jobs growth | |
The company said that while European earnings continued to be affected by the challenging consumer environment, they drove the majority of the company's operating income growth for the period. | |
McDonald's UK announced it was on track to create 2,500 jobs this year, having already hired 1,500 - partly because it was opening 14 new restaurants and partly because more existing restaurants were open for longer. | |
"We know it's still tough out there for everyone and that's why I'm determined to maintain momentum by continuing to invest in the long-term growth of our business - our restaurants, our people and quality ingredients that are responsibly sourced - to ensure our customers enjoy a great experience at great value every time they visit," said Jill McDonald, chief executive of McDonald's UK. | |
US sales grew 1%, helped by the Dollar Menu and new products such as chicken wraps and egg-white breakfast sandwiches. | |
In the Asia-Pacific, Middle East and Africa, sales declined 0.3% - mainly owing to "negative results" in China, Australia and Japan. |