22 October 2012 10:27
McDonalds global profits have fallen significantly in the third quarter of the year to $1.45bn (£911m), down from $1.51bn for the same period last year with the drop being attributed to strong competition and the continuing weak global economy.
Increased competitions from brands such as Yum, who operate KFC along with other global competitors such as Wendy's and Burger King have hit McDonalds at a time where the uncertain economy is also playing a part.
McDonald's European division was actually slightly up for underlying sales at 1.8%, although it was noted that the austerity measures across Europe were having an impact. Unique offers and the sponsorship of the Olympics was attributed to the rise in sales in Europe.
According to a report on the International Business Times website, McDonalds Chief Executive Officer Don Thompson was quoted as saying:
"When the economic crisis began in 2008, few people thought the environment would still be as uncertain and fragile as it is today. It is clear, however, that this operating environment is the new norm."
Thompson then went on to say that whilst the sales pressure would continue he is "confident in the underlying strength of our business model".