Global burger giant McDonald’s, the world’s largest beef user, has posted strong financial results for the second quarter ended June 30, including higher revenues and profit compared with the previous year.
McDonald's chief executive Don Thompson said the result had been achieved, despite the informal eating out market “remaining challenging” and economic uncertainty “pressuring consumer spending.”
Comparable (same store) sales across McDonald’s global operations lifted 1 percent compared with the same period last year. Both revenue and operating income increased 2pc.
The company’s US operations underpinned the result, with Europe and Asian regions less well-performed.
In the US, second quarter comparable sales rose 1pc, while operating income was relatively flat.
In Europe, comparable sales were down 0.1pc as negative results in Germany and France were offset by solid performance in the UK and Russia. While Europe's top-line results continued to be impacted by the challenging consumer environment, second quarter operating income increased 5pc and drove the majority of the company's operating income growth for the period.
In the Asia/Pacific, Middle East and Africa (APMEA) region, second quarter comparable sales declined 0.3pc primarily due to negative results in China, Australia and Japan, offset somewhat by positive performance in other markets. Results in China reflected the impact of Avian influenza, which diminished through the quarter. The segment's quarterly operating income declined 1pc.
“While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat,” CEO Don Thompson said.
“Based on recent sales trends, our results for the remainder of the year are expected to remain challenged. The company expects the dynamics of the current environment to persist, namely flat to declining informal eating out markets, diminishing ability to raise menu prices, ongoing cost pressures and heightened competitive activity.”
McDonald’s expects to make capital expenditure for 2013-14 totalling about $3.1 billion, mostly spent on new restaurants. It expects to open 1550 new outlets this year, mostly in Asia.