TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
McDonald's sales growth slows, blow from Middle East war
The big restaurant company, which has enjoyed robust revenues as inflation drove customers to the chain, still achieved sales increases, but not as big as inflation has moderated.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
This photograph taken on September 6, 2018, shows the logo of a McDonalds restaurant in Montpellier, southern France. (AFP/Pascal Guyot)
M
cDonald's reported higher quarterly profits Monday, although comparable sales growth slowed as it cited a blow from war in the Middle East.
The big restaurant company, which has enjoyed robust revenues as inflation drove customers to the chain, still achieved sales increases, but not as big as inflation has moderated.
Global comparable sales grew 3.4 percent in fourth quarter, down from 8.8 percent in the third quarter and below the annual average.
"Our global comparable sales growth of nine percent for the year is a testament to the tremendous dedication of the entire McDonald's System," said Chief Executive Chris Kempczinski.
"We remain confident in the resilience of our business amid macro challenges that will persist in 2024," he added.
Profits in the quarter grew seven percent to $2.0 billion, while revenues increased eight percent to $6.4 billion.
McDonald's had its strongest comparable sales growth in its home market of the United States, where it benefited from "strategic menu price increases."
Stronger international markets included Britain, Germany and Canada, while it suffered negative comparable sales in France.
McDonald's also cited war in the Middle East as a drag. Most of the company's restaurants in the region are under a license arrangement.
McDonald's "is monitoring the evolving situation, which it expects to continue to have a negative impact on systemwide sales and revenue as long as the war continues," the company said in a securities filing.
Its shares fell 2.1 percent in pre-market trading.
