Healthier Menu Gives Mcdonald's Healthier Sales in Europe
McDonald's has notched up its biggest increase in European sales for a decade, suggesting that menu changes, new restaurant designs and World Cup promotional tie-ins have begun to pay off.
The fast-food chain said its like-for-like sales in Europe - where Britain, France and Germany account for the bulk of its operation - rose 6.3% in the three months to June. Its worldwide profits jumped 58% to $834m (£453m). Chief executive Jim Skinner said: "We are pleased with Europe's improving profitability and remain intent on building upon those strong results."
The rise was the first piece of European good news for some time for the company, which admitted last year that it was struggling in Britain and has shut 25 restaurants. McDonald's has been beset by bad publicity about health issues, most notably obesity. In response to criticism, it has added more nutritious snacks - including "deli sandwiches" introduced in September - and has cut the salt content in its chicken nuggets.
In Britain, a new chief executive, Steve Easterbrook, was appointed in April and the chain has been trying out eight new looks for its restaurants - characterised by chrome tables, relatively subtle colours and, in some cases, internet access. To tie in with the World Cup, an aggressive marketing campaign included a competition encouraging diners to send text messages to win match tickets.
The company's reinvention has gathered pace in the United States, where the introduction of premium coffee pushed up breakfast sales and new items such as an Asian chicken salad proved popular with diners.
McDonald's worldwide revenue rose 9% to $5.57bn for the quarter. For the first half of the year, profits rose 17% to $1.46bn, aided by a gain on the sale of a US chain, Chipotle Mexican Grill. The figures pleased Wall Street investors and sent McDonald's shares up nearly 1% in early trading. McDonald's has been through a torrid period, facing vigorous attacks by campaigners such as Morgan Spurlock, whose documentary Super Size Me demonstrated the ill effects of living on a diet of the company's burgers.
McDonald's has 30,000 restaurants in 119 countries, of which 1,200 are in Britain. The company recently launched an advertising campaign in the UK arguing that its so-called "McJobs" offer better pay and conditions than critics suggest.
The fast-food chain said its like-for-like sales in Europe - where Britain, France and Germany account for the bulk of its operation - rose 6.3% in the three months to June. Its worldwide profits jumped 58% to $834m (£453m). Chief executive Jim Skinner said: "We are pleased with Europe's improving profitability and remain intent on building upon those strong results."
The rise was the first piece of European good news for some time for the company, which admitted last year that it was struggling in Britain and has shut 25 restaurants. McDonald's has been beset by bad publicity about health issues, most notably obesity. In response to criticism, it has added more nutritious snacks - including "deli sandwiches" introduced in September - and has cut the salt content in its chicken nuggets.
In Britain, a new chief executive, Steve Easterbrook, was appointed in April and the chain has been trying out eight new looks for its restaurants - characterised by chrome tables, relatively subtle colours and, in some cases, internet access. To tie in with the World Cup, an aggressive marketing campaign included a competition encouraging diners to send text messages to win match tickets.
The company's reinvention has gathered pace in the United States, where the introduction of premium coffee pushed up breakfast sales and new items such as an Asian chicken salad proved popular with diners.
McDonald's worldwide revenue rose 9% to $5.57bn for the quarter. For the first half of the year, profits rose 17% to $1.46bn, aided by a gain on the sale of a US chain, Chipotle Mexican Grill. The figures pleased Wall Street investors and sent McDonald's shares up nearly 1% in early trading. McDonald's has been through a torrid period, facing vigorous attacks by campaigners such as Morgan Spurlock, whose documentary Super Size Me demonstrated the ill effects of living on a diet of the company's burgers.
McDonald's has 30,000 restaurants in 119 countries, of which 1,200 are in Britain. The company recently launched an advertising campaign in the UK arguing that its so-called "McJobs" offer better pay and conditions than critics suggest.

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