Profit drop for McDonald's | RetailDetail

Profit drop for McDonald's

Profit drop for McDonald's

McDonald's has had to take a 5 % downturn for its 2014's first quarter profit. Disappointing results in its American home market were mostly to blame, even though turnover rose slightly.

Europe performs well

McDonald's had a 6.7 billion dollars (4.9 billion euro) turnover in its first quarter, a 1 % rise compared to the year before and in line with analysts' expectations. Net profit dropped 5 % however, to 1.2 billion dollars (870 million euro).

 

Lower numbers can be attributed to a disappointing turnover in the United States, where the like-for-like turnover dropped 1.7 %, while Europe managed a 1.4 % like-for-like turnover growth, mostly thanks to the United Kingdom, France and Russia. In the rest of the world, like-for-like turnover grew 1 %.

 

To boost the numbers, McDonald's plans to use a large marketing campaign to emphasize its breakfast menu and its basic items, like the Big Mac, as these represent 40 % of turnover.

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