McDonalds to Open 1000 Stores Despite Economy
Karenke4 | January 27, 2009 at 09:34 amby
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McDonalds is fighting the recession by opening 1000 more stores around the globe despite an overall income loss over the previous year.
The world's largest hamburger chain also said fourth-quarter net income fell 23% to $985.3m (£710m), from $1.27bn a year before.
Revenue fell to $5.57bn from $5.75bn, even though global same-store sales rose 7.2%, as the firm was hit by the strong dollar.
McDonalds has historically fared well through economic downturns. While most companies are putting their expansion plans on hold and cutting operating costs, McDonalds sees an opportunity for both. By offering inexpensive (albeit nutritionless) food, in convenient locations (i.e. everywhere) McDonalds may come out of the recession with an even tighter hold on the food expectations of the globe.
In the quarter, its same-store sales in the US rose 5% on the year before.
International same-store sales were also ahead, rising 7.6% in Europe and 10% in the Asia-Pacific, Middle East and Africa division.
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