McDonald's sales fall in Asian markets
McDonald’s sales in Asia fell last month, raising fears of the impact on companies of weakening consumer confidence in China.
Sales were weaker than expected in all regions, but analysts were especially surprised by declines in Asia, the Middle East and Africa. Jim Skinner, McDonald’s chief executive, attributed the weak sales to an “increasingly challenging global economic environment” but was optimistic that the world’s largest restaurant chain by sales could still deliver long-term growth.
McDonald’s said that global volatility and austerity measures in Europe would “significantly pressure” its second-quarter results and that the impact of currency fluctuations would cut its earnings by up to nine cents a share. Shares of McDonald’s fell 0.4 per cent to $87.99 in midday trading.
Global same-store sales at McDonald’s rose 3.3 per cent year-on-year, led by a 4.4 per cent rise in the US and a 2.9 per cent increase in Europe. Sales in Asia, the Middle East and Africa, however, declined by 1.7 per cent in spite of projections of growth. – (Copyright The Financial Times Limited 2012)