McDonald’s Showing Signs of Tear From Economy
America’s fat will not like this news story. But for all those who were soft-killed over the years by fast food giants, consider this ‘divine justice’.
Grant J. Kidney
ABC News — McDonald’s Corp., which has thrived in recent years by emphasizing affordability and rolling out popular new menu items, is starting to show signs of tear from the volatile global economy.
The world’s biggest hamburger chain said Monday that its net income fell 4 percent in the second quarter as a result of a strong dollar and budget-conscious consumers in economically hard-hit regions world. Suggesting more challenges ahead, the Oak Brook, Ill.-based company also said a key sales figure slowed in July.
For the three months ended June 30, McDonald’s said global sales at restaurants open at least a year rose 3.7 percent, with gains in every region of the world. Analysts say the slower growth could be the result of the stiffer competition McDonald’s is facing at home and abroad. Like other U.S. companies, McDonald’s is also being squeezed by unfavorable currency exchange rates.