McDonald’s faces the heat of weak revenue


July 23, 2013 | By RetailME Bureau

Global foodservice retailer the McDonald’s Corporation recorded weak revenue as its shares plummeted the most in nine months after it posted second-quarter profit. According to analysts, economic weakness will continue to hurt the company results for the remainder of the year.

“While we are trying to attract customers with less expensive meals such as dollar menu food in the US and combo meals in Europe, based on recent sales trends, our results for the remainder of the year are expected to remain challenged. Our July same-store sales are projected to be unchanged from last year. Sales at global stores open at least 13 months rose only 1% in the quarter, matching the average estimate of analysts surveyed by Consensus Metrix,” reveals Donald Thompson, McDonald’s CEO, in a statement.“Several currencies weakened against the dollar during the quarter and currency translation will negatively affect the company’s 2013 profit by seven-to-nine cents a share,” adds McDonald’s CFO Peter Bensen.

In the US, McDonald’s has been affected by a consumer environment where unemployment has been stuck above 7.5% for 54 straight months and increasing competition from rivals who also are introducing new value items. Besides the US, McDonald’s comparable store sales declined 0.1% in Europe where it faces cash-strapped consumers and 0.3% in the company’s Asia-Pacific and the Middle East and Africa region during the quarter.

 

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /


Cookit

Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created 

Continue Reading

January 5, 2021 | By RetailME Bureau
Al Islami Plant-Based Burger

UAE-based Al Islami Foods, one of the largest frozen food companies in 

Continue Reading

January 3, 2021 | By RetailME Bureau
Marks & Spencer's plant-based range

Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free 

Continue Reading

December 23, 2020 | By RetailME Bureau

World’s largest fully integrated online brand in fresh fish and meat e-commerce 

Continue Reading

December 14, 2020 | By RetailME Bureau
Koita

Homegrown, organic and plant milk company, Koita has announced its expansion into 

Continue Reading

December 9, 2020 | By RetailME Bureau
Middle East's vegan revolution

Today’s on-demand streaming services are ripe with docu-series and explainer videos on 

Continue Reading

December 3, 2020 | By Shruthi Nair

International food retailer, SPAR has today announced a global partnership to tackle food waste with the 

Continue Reading

December 3, 2020 | By RetailME Bureau

UAE-based concept grocery retail chain, Grandiose has opened a new supermarket within 

Continue Reading

November 22, 2020 | By RetailME Bureau

US-based fast food chain, Nathan’s famous Inc. brings another New York classic, 

Continue Reading

November 12, 2020 | By RetailME Bureau

Dubai-based Union Coop, the leading Consumer Cooperative in the UAE, opened its 

Continue Reading

November 11, 2020 | By RetailME Bureau

UAE homegrown marketplace, Noon.com has announced its Yellow Friday sale from November 

Continue Reading

November 5, 2020 | By RetailME Bureau

UAE-based Al Maya Group officially launched an exclusive range of Woolworths products 

Continue Reading

October 30, 2020 | By RetailME Bureau




Download Images RetailME Magazine