McDonald's profits slip

Hamburger giant McDonald's has warned that its profits for the first three months of 2001 will be lower than expected because of continuing consumer concerns over the safety of beef, prompted first by the BSE scare and now by foot-and-mouth.

Chairman and chief executive officer Jack Greenberg said: "The effect of consumer concerns regarding the European beef supply has persisted longer than we expected, despite the fact that McDonald's overall safety and quality standards lead the industry."

The company said it would increase the variety on its menus in Europe and emphasise quality standards.

Worldwide sales for the first two months of 2001 were up by 4% to $6.2b (£4.35b).

But sales in Europe were flat, compared with a 14% increase during the same period last year.