American fast food chain McDonald’s says third quarter net income rose – but fell short of expectations.
McDonald’s says comparable sales and operating income in Asia/Pacific, Middle East and Africa (APMEA) declined 1.4 per cent and 12 per cent, respectively, reflecting weakness in China, Japan and Australia due, in part, to the ongoing challenging environment.
Net income for the three months to September 30 grew to $1.52 billion or $1.52 per share, that’s up from last year’s $1.46 billion or $1.43 a share. But that was below forecasts of $1.51 per share.
Revenue grew two per cent to $7.32 billion from $7.15 billion last year, falling short of the expected $7.33 billion.
Despite its poor performance in the region, APMEA remains aligned behind the key priorities of accelerating growth at the breakfast and late-night timeframes, enhancing local relevance and broadening accessibility with branded affordability, expanded conveniences and new restaurant openings.
Comparable sales and operating income in the US increased 0.7 per cent and five per cent, respectively. While in Europe, sales rose 0.2 per cent and operating income increased 11 per cent.
“While we are focused on strengthening our near-term performance, the current environment continues to pressure results,” said CEO Don Thompson.
McDonald’s says global comparable sales performance will be in-line with recent quarterly trends while restaurant margin percentages are expected to decline at a level relatively similar to first quarter results.
