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  • Jul 26th, 2017
  • Comments Off on McDonald reports jump in Q2 profits; US sales strong
McDonald's feasted on a big jump in profits in the latest quarter, amid strong US sales driven by a discounted soda promotion and a premium sandwich launch, the company reported Tuesday. Net income for the quarter ending June 30 surged 28 percent, a $1.4 billion jump from the same period of 2016, and easily topping analyst expectations. However, revenues dipped three percent to $6.0 billion, partly due to the strong dollar and the refranchising of restaurants.

Chief executive Steve Easterbrook, who was appointed in 2015 amid a lengthy slump at the fast-food giant, said the results showed progress following efforts to improve service and simplify the menu in its home market. The US market accounts for about one-third of McDonald's revenues. "We're building a better McDonald's and more customers are noticing," Easterbrook said. "Our relentless commitment to running great restaurants and keeping the customer at the center of everything we do is generating broad-based strength and momentum across our entire business."

Sales rose 3.9 percent in same-store US restaurants following a push to offer soft drinks in all sizes at just $1 and the launch of "Signature Crafted" sandwiches, which have applewood smoked bacon, Dijon sauce and other premium ingredients. McDonald's said sales also were strong in Britain, Canada, Germany and China. Neil Saunders, managing director of GlobalData Retail, praised the results as a sign the fast-food giant has become "more entrepreneurial and nimble" compared with a few years ago.



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