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BCN-12
US-FOOD-RESTAURANTS-EARNINGS
McDonald’s notches sales growth in key regions; profits dip
NEW YORK, Oct 23, 2018 (BSS/AFP) – McDonald’s, home of the Big Mac, reported
a dip in third-quarter profit Tuesday, but notched comparable sales growth in
key regions, including Britain, France and Japan.
Net income at the fast-food giant fell to $1.6 billion, a drop of 13.1
percent from the same period of the prior year. But the 2017 quarter was
boosted by about $850 million from the sale of businesses in China and Hong
Kong.
Quarterly revenues fell 6.7 percent to $5.4 billion.
But on the bright side, comparable sales — a key benchmark in the
restaurant business — grew in all four of McDonald’s regional categories,
with the home US market up 2.4 percent.
The company also experienced strong sales growth in Britain, Australia,
France, Italy, the Netherlands and Japan, McDonald’s said.
The results come on the heels of improvements in comparable sales over the
last three years following efforts at simplifying the menu to speed service
and upgrading mobile applications to meet consumer demand.
The company also has invested in food delivery.
“We have made substantial progress modernizing restaurants around the
world, enhancing hospitality and elevating the experience for the millions of
customers we serve every day,” said McDonald’s Chief Executive Steve
Easterbrook.
Shares jumped 2.6 percent to $170.95 in pre-market trading.
BSS/AFP/SR/1930 HRS