Strong UK sales at McDonald’s fail to hide disappointment
McDonald’s yesterday reported a smaller-than-expected rise in April sales, after a strong performance in the UK and Europe failed to offset tough trading elsewhere.
Despite national debt woes, widespread austerity measures and high unemployment in the Eurozone, McDonald’s grew same-restaurant sales in the region by 3.5 per cent, above analysts’ forecasts of a three per cent gain. The company said strong sales in the UK were a major factor.
Same-restaurant sales in the United States rose 3.3 per cent, although analysts had expected a gain of roughly five per cent.
While McDonald’s is outperforming most of its peers, it is sensitive to financial belt-tightening in Europe and higher food and labour costs in the US.
In Asia, April sales at restaurants open at least 13 months rose 1.1 per cent, below analysts’ estimates, hurt by a drop in Japan.
Globally, the world’s biggest hamburger chain said that sales at restaurants open at least 13 months rose 3.3 per cent.