McDonald's reports worse-than-expected 3Q profitsOctober 20, 2012 - 11:10 AMT PanARMENIAN.Net - McDonald's has reported worse-than-expected third-quarter profits, after being hit by the strength of the dollar and increasing competition, BBC News reported. Net income fell to $1.46bn for the quarter, down from $1.51bn a year earlier. Total sales were barely changed at $7.15bn, down from $7.17bn last year. McDonald's chief executive, said that sales had kicked off October at a lower level than the same time last year and its shares closed down 4.5%. McDonald's said that sales at stores open at least 13 months rose 1.9% across the group as a whole, below analysts' expectations of a 2% increase. In the U.S., sales grew by 1.2%, but operating income fell by 1%. In Europe, underlying sales were up 1.8%. Operating income fell 7%, but if the impact of the dollar is stripped out it rose 3%. The stronger dollar means international sales are worth less when profits are repatriated. Sales across the Middle East, Africa and the Asia-Pacific region grew by 1.4% as footfall rose, helped by solid trading in China and Australia. Chief executive Don Thompson said that while sales would carry on experiencing pressure, the company saw "significant long-term opportunities" for its brand and remained "confident in the underlying strength of our business model". Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Viva-MTS: Tech solutions to modernize infrastructure of border village The border village has been the focus of Viva-MTS and the Foundation for the Preservation of Wildlife and Cultural Values since 2015. Ucom's fixed network launched in Artashat To mark this occasion, the company has introduced a special offer exclusively for Artashat residents. “By Your Side”: IDBank's new support program for displaced Artsakh citizens IDBank is launching a long-term social support program for forcibly displaced Artsakh residents. The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. |