American fast food chain McDonald’s is set to open up 1000 more stores during 2009 as part of its expected capital spending of US$2.1 billion.
While global same-store sales rose 7.2%, revenue fell marginally, due to the strong US dollar.
McDonald’s net income fell 23% from US$1.27 billion to $985.4 million. This happened in the same quarter that they slashed operating costs by 8%. The company was hit by the rising costs of ingredients such as meat and cheese.
Chief executive Jim Skinner has said the company is to invest $2.1 billion into the opening of the new restaurants. Sales in the US rose 5% and other continents, including the Middle East and Africa, saw even higher growth.
In November 2008, McDonald’s opened up their 1000th Chinese store. The chain currently has more than 31,000 stores around the globe, and counting. The first location to open was in San Bernardino, California in 1940.
Sources
- Martinne Geller and Lisa Baertlein. McDonald's profit tops view, sales growth slows — Reuters, January 26, 2009
- McDonald's to open up 1,000 stores — BBC News Online, January 26, 2009
- McDonald's opens 1,000th China store — Reuters, November 14, 2008
Source & Attribution
Originally published by Wikinews on January 27, 2009. Original author: Wikinews.
CC BY 2.5. Photograph: A McDonald's store in the United Kingdom Photo: UNI|SOUTH Own work Source file. CC BY-SA 4.0. CC BY-SA 4.0.
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