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 percent in the three months to June. Its worldwide profits jumped 58 percent to US$834 million.
Chief executive Jim Skinner said: "We are pleased with Europe's improving profitability and remain intent on building upon those strong results."
PHOTO: EPA
The rise was the first piece of European good news for some time for the fast-food giant, which admitted last year that it was struggling in Britain and had 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 -- characterized by chrome tables, relatively subtle colors 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 US, 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 percent to US$5.57 billion for the quarter. For the first half of the year, profits rose 17 percent to US$1.46 billion, 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 percent 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. 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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