The US burger chain’s branches are currently being boycotted in predominantly Muslim countries. This affects the business figures.
The US fast food company McDonald’s continues to feel the consequences of the Middle East conflict in the first quarter. Sales rose by just 1.9 percent on a comparable basis, as the US company announced in Chicago. Analysts had expected more, even though the situation in the Middle East had already weighed on the group in the previous quarter.
According to McDonald’s, around a tenth of its revenues are generated in the Middle East. However, the US burger chain’s branches in predominantly Muslim countries are currently being boycotted. The negative impact of the region on business could not be offset by slightly better developments in Europe, Latin America and Japan.
Things haven’t been going well in the home market recently either. In the USA, sales rose by 2.5 percent on a comparable basis, roughly meeting analysts’ expectations. In the same period last year, however, there was still an increase of 12.6 percent. McDonald’s increased the prices of its burger menus. Customers with lower incomes then held back.
Sales climbed by five percent to 6.17 billion US dollars (5.75 billion euros) in the last quarter. Operating profit increased by 8 percent to $2.74 billion. Earnings per share were $2.66 after $2.45 a year earlier. Here too, McDonald’s slightly missed expectations.
Source: Stern
