Fast food chain McDonald’s continues to attract customers despite price hikes for its products, but its profits have been dented by store closures in Russia and Ukraine and higher costs.
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Same-store sales, the benchmark in retail, rose 9.7% in the second quarter.
In the United States, its biggest market, they rose 3.7%, driven by price increases as well as promotional offers in restaurants and online.
Sales also increased strongly in France, Germany, Brazil and Japan, but fell in China due to strict government-imposed confinements in the face of the resurgence of Covid-19.
Taking into account the closures of stores in Russia and Ukraine, as well as the effects of exchange rates, the turnover of the group however fell by 3% to 5.72 billion dollars.
AFP
McDonald’s net profit fell 46% to $1.2 billion.
But reported by share and excluding exceptional items, the benchmark on Wall Street, the profit reached 2.55 dollars, exceeding the 2.47 dollars expected by analysts.
The company’s operating margins have been negatively affected by restaurant closures in Russia and Ukraine, as well as inflationary pressures on labor and raw materials.
In particular, the company is facing rising prices for products such as chicken and beef in the United States and, in a tight labor market, has had to raise its wages a little.
