Full-year revenues fall at McDonald’s as like-for-like sales and profits rise

31/01/2018 - 11:48
McDonald's Corporation has announced its full-year results for 2017, reporting that its worldwide revenues fell by 7% compared to 2016 with the fast food giant brining in a total of $22.8 billion in group sales.

The $1.8bn drop in sales was offset by $3.6bn worth of savings in operating costs and expenses, helping lift overall profits up 23% to $9.5bn- figures which benefited from a gain of approximately $850 million on the sale of the company's businesses in China and Hong Kong.

Excluding the impact of the gain, as well as current and prior year impairment and strategic charges, consolidated operating income increased by 9%.

The Big Mac maker reported global like-for-like sales increased by 5.3% year-on-year with systemwide sales increasing 7% in constant currencies.

In its last quarter of the year ended 31 December, revenues fell by 11% despite a 5.5% increase in Lfl sales.

"2017 was a strong year for McDonald's as customers responded to the many ways we are making their experience more convenient and enjoyable," said McDonald's president and chief executive officer Steve Easterbrook.

"We served more customers more often, achieved our best comparable sales performance in six years, gained share in markets around the world and made tremendous progress with growth platforms such as delivery, mobile order and pay and Experience of the Future."

The chain’s ‘Experience of the Future’ plans include the opening of an additional 1,000 restaurants, 75% of which will be under franchisee agreements.

It also plans to make further advancements in technology to “modernize the customer experience and redefine convenience.”

Chief financial officer Kevin Ozan said: “I'm confident that now is the opportune time to strategically invest in our business and our restaurants to drive profitable growth and become an even better McDonald's."

In the company’s International lead segment, which includes its 1,200 sites across the UK, profits increased by 14% with Lfl sales growing by 6%.

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