McDonald's says ‘informal eating-out market remains challenging’

PanARMENIAN.Net - McDonald's says the "informal eating-out market remains challenging" and that this will affect its results for the rest of the year, according to BBC News.

The comment accompanied its second quarter earnings, which missed analysts' expectations.

In the three months to June, the company earned $1.4bn, an increase from last year's $1.35bn but less than Wall Street had expected.

McDonald's said that global sales at established restaurants edged up 1%.

However, Europe saw a 0.1% decline as a solid sales performance in the UK and Russia failed to offset a decline in France and Germany.

The company said that while Europe's earnings continued to be affected by the challenging consumer environment, they drove the majority of the company's operating income growth for the period.

Chief executive Dan Thompson added: "While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat.

"Based on recent sales trends, our results for the remainder of the year are expected to remain challenged.

U.S. sales grew 1% helped by the "Dollar Menu" and new products such as chicken wraps and egg-white breakfast sandwiches.

In the Asia-Pacific, Middle East and Africa, sales declined 0.3% - mainly due to "negative results" in China, Australia and Japan.