views

McDonalds warns euro will hurt full-year profits

City A.M. Reporter
MCDONALDS reported a stronger-than-expected 4.8 per cent rise in worldwide May sales at established restaurants yesterday, but warned it expects a weak euro to take a bite out of its full-year profits.

Roughly a quarter of McDonald’s consolidated operating income originates in countries that use the euro currency, the world’s biggest hamburger chain said yesterday.

And based on current exchange rates, McDonald’s expects currency conversion to hurt full-year net income per share, versus its previous expectation for a slight benefit.

May sales at McDonald’s restaurants open at least 13 months rose 3.4 per cent in the US and 5.7 per cent in Europe. May same-store sales rose 3.8 per cent in the Asia/Pacific, Middle East and Africa region due to strength in Australia and China, better than the 3.1 per cent increase analysts had expected.