Double setback for McDonald's
Weak economic conditions in Asia and Latin America and fears about the safety of beef in Japan contributed to a drop in profits for fast-food giant McDonald's.
Its net income fell by 17% to $1.6b (£1.1b) during 2001, and by 40% during the fourth quarter to $272m (£191m).
Charges affecting last-quarter profits included a $200m (£141m) charge for reorganisation, $101.5m (£71m) from the closure of 154 poorly performing restaurants, and $45m (£32m) for the anticipated sale of Aroma Caf‚ in the UK.
New openings helped to boost sales from owned and franchised restaurants. Annual sales edged forward by 1% to $40.6b (£28.5b) and last-quarter sales increased 2% to $10b (£7b).
Although sales fell in Asia and Latin America, turnover grew in both the USA (by 2% in the year and 3% in the fourth-quarter) and in Europe, where the main contribution came from the UK, France and Germany.
European sales increased by 10% in the last quarter and by 1% for the year in dollar terms, and by 9% and 5% respectively excluding currency exchange rates.
During the year, McDonald's served 46 million customers a day, one million a day more than in 2000. It added 1,319 McDonald's restaurants and 67 other restaurants, which include Aroma Caf‚, Boston Market, Chipotle and Donatos Pizza.
This year it intends to open up to 1,400 new McDonald's and up to 150 other restaurants.
