Business USA

McDonald’s profits fell by 4% in second quarter

New York – McDonald’s reported net profit drop of 4% in the second quarter, a decline attributed to the strong U.S. dollar and consumer caution.

The giant U.S. fast food, which has in recent years put forward its cheap and popular additions to its menu, begins to show signs that it is also affected by the fragility of the economy World.

Suggesting other obstacles ahead, the company based in Oak Brook, Illinois, also announced a slowdown of a key indicator of its sales in July. For the three months ended June 30, McDonald’s said its global sales at restaurants open at least a year rose 3.7%, with gains in all regions. But like other U.S. companies, McDonald’s suffers from unfavorable exchange rates. When the U.S. dollar gaining strength against other currencies, companies working abroad suffer a blow by converting local currencies into dollars. Analysts also fear that the fast food chains are affected by the climbing costs of ingredients in the coming months due to drought in the United States.

The CEO Don Thompson, who took over this month after the retirement of Jim Skinner said he believes the original menu and investment in the renovation of restaurants should still continue to attract customers.

In the U.S., sales at restaurants open at least a year rose 3.6%, while increasing by 3.8% in Europe – where McDonald’s has 40% of its business. In the region that includes Asia Pacific, Middle East and Africa, the data showed a jump of 0.9%, while the performance in Australia and China offset the weakness in Japan.

For the quarter, McDonald’s reported profits of U.S. $ 1.35 billion, or $ 1.32 per share. A year earlier, net income was $ 1.4 billion, or $ 1.35 per share. Total revenues for the quarter were $ 6.92 billion, a slight increase from 6.91 billion in the corresponding period of 2011. Excluding the impact of exchange rates, the company claims to have experienced revenue growth of 5%.

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