McDonald’s cautious as tough economy eats into food sales

 
Marion Dakers
MCDONALD’S yesterday said it expects the rest of the year to be tough for fast food sales, after posting a four per cent rise in net income to almost $1.4bn (£911m) for the second quarter.

Shares in the world’s biggest restaurant chain lost 2.7 per cent yesterday after chief executive Don Thompson said “the informal eating out market remains challenging and economic uncertainty is pressuring consumer spending”.

Revenues rose two per cent to $7.08bn in the three months to the end of June.

In Europe, second quarter like-for-like sales fell 0.1 per cent, with a decline in France and Germany almost offset by a “solid performance” in the UK and Russia.

The firm said it is looking to beef up its premium beverage and meals in Europe to kick-start sales, as well as revisiting its “everyday affordability options” across both its breakfast and main menus.

Sales also declined in Asia, the Middle East and Africa, but rose one per cent in its US restaurants open more than a year.