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McDonald's UK growth strong despite horsemeat scandal and hot summer McDonald's UK growth strong despite horsemeat scandal and hot summer
(about 2 hours later)
Fast food giant McDonald's shrugged off last year's horsemeat scandal as it reported a strong performance from its UK business for 2013. McDonald's shrugged off last year's horsemeat scandal as it reported a strong performance from its UK business for 2013.
But the world's biggest burger chain admitted it was a "challenging year" for the wider business after it posted falling global sales and said fewer customers were visiting its restaurants. But the world's biggest burger chain admitted it was a challenging year for the wider business after it posted falling global sales and said fewer customers were visiting its restaurants.
The company reported a 0.2% fall in comparable worldwide sales after a 0.1% fall in the final three months. The company reported a 0.2% rise in comparable worldwide sales after a 0.1% fall in the final three months.
A robust performance from the UK, Russia and France helped sales in Europe rise 1% in the fourth quarter, although earnings across the region remained flat when foreign exchange movements are stripped out.A robust performance from the UK, Russia and France helped sales in Europe rise 1% in the fourth quarter, although earnings across the region remained flat when foreign exchange movements are stripped out.
Jill McDonald, chief executive of McDonald's UK, said the British chain had had another strong year of growth despite an "economic environment has remained challenging for customers, the horsemeat scandal (which) cast a cloud over the food industry and an uncharacteristically hot summer." Jill McDonald, chief executive of McDonald's UK, said the British chain had had another strong year of growth despite an "economic environment has remained challenging for customers, the horsemeat scandal [which] cast a cloud over the food industry and an uncharacteristically hot summer".
The group, which celebrates 40 years in the UK in November, said its supply chain remained unaffected by the horsemeat crisis, which hit a raft of food retailers and restaurant chains across the UK.The group, which celebrates 40 years in the UK in November, said its supply chain remained unaffected by the horsemeat crisis, which hit a raft of food retailers and restaurant chains across the UK.
Europe was McDonald's best performing region at the end of 2013. Sales dropped 1.4% across the US and were down 2.4% across Asia-Pacific, Middle East and Africa.Europe was McDonald's best performing region at the end of 2013. Sales dropped 1.4% across the US and were down 2.4% across Asia-Pacific, Middle East and Africa.
Group-wide net income for the full year rose 3% in constant currencies to $5.6bn (£3.4bn), but the fourth quarter trading figures were lower-than-expected.
McDonald's has come under pressure amid a healthy eating push, while it has also faced heightened competition from rivals such as Burger King.McDonald's has come under pressure amid a healthy eating push, while it has also faced heightened competition from rivals such as Burger King.
The company plans to open between 1,500 and 1,600 new restaurants in 2014 and revamp 1,000 existing locations. It currently has more than 34,000 locations worldwide. The company plans to open up to 1,600 new restaurants in 2014 and revamp 1,000 existing locations. It currently has more than 34,000 locations worldwide.
It opened 24 new restaurants in the UK in 2013.It opened 24 new restaurants in the UK in 2013.
Jill McDonald said: "We are mindful that whilst the emerging shoots of economic recovery are encouraging, it's still tough out there for our customers."Jill McDonald said: "We are mindful that whilst the emerging shoots of economic recovery are encouraging, it's still tough out there for our customers."