McDonald's reports earnings dip
McDONALD’S, THE world’s largest restaurant chain by revenues, reported disappointing third-quarter earnings yesterday, blaming global economic “challenges” for blunting its momentum.
The results mark the second consecutive downbeat quarter for Don Thompson, the chief executive who took over last summer with the challenge of extending the company’s recent run of success.
McDonald’s said comparable store sales rose less than 2 per cent in the US, Europe, Asia and the Middle East.
The company said comparable store sales were negative so far this month, signalling a slow end to the year.
McDonald’s has been battling high commodity costs along with tougher competition from the likes of Yum Brands, which has been dominating in China and resurgent in the US. The spread of “better burger” restaurants has also eaten into its hamburger market share.
Mr Thompson said McDonald’s would make “near-term tactical shifts” to help the company regain its footing. – (Copyright The Financial Times Limited 2012)