McDonald’s has released its 2013 fourth quarter results. They were average and lower than expected. The company is looking towards a better 2014.
Weak American market
Fourth quarter turnover was 2 % higher than the same period in 2012, generating 5.18 billion euro. It is lower than analyst expectations, which were at 5.22 billion euro. Net profit for the fourth quarter was 1 billion euro, equal to the net profit in the same quarter in 2012.
For the full year, McDonald’s had a 20.6 billion euro turnover, again two percent higher than in 2012. That resulted in a net profit of 4.1 billion euro, 4 % higher than in 2012.
Like-for-like turnover dropped 1.4 % in the fourth quarter in the United States alone. Other regions (Asia, Middle East, and Africa) also suffered, with a 2.4 % drop in the last quarter. Europe managed to buckle the trend, with a 1 % growth. That was mainly because of strong performances in the United Kingdom, Russia and France.
Investments in 2014
McDonald’s will be focusing on locally relevant menu’s to grow the numbers once more. It will also open 1,500 to 1,600 new restaurants in 2014. Another 1,000 restaurants will get a facelift.
The chain opened 3 new restaurants in Belgium in 2013. It will add another 4 in 2014, while 6 others will be updated. In total, McDonald’s will invest some 20 million euro in Belgium.