NEW YORK: McDonald’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 per cent in fourth quarter, down from 8.8 per cent in the third quarter and below the annual average.
“Our global comparable sales growth of nine per cent 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 per cent to $2.0 billion, while revenues increased eight per cent 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. – AFP
