McDonald's reports worse-than-expected 3Q profitsOctober 20, 2012 - 11:10 AMT PanARMENIAN.Net - McDonald's has reported worse-than-expected third-quarter profits, after being hit by the strength of the dollar and increasing competition, BBC News reported. Net income fell to $1.46bn for the quarter, down from $1.51bn a year earlier. Total sales were barely changed at $7.15bn, down from $7.17bn last year. McDonald's chief executive, said that sales had kicked off October at a lower level than the same time last year and its shares closed down 4.5%. McDonald's said that sales at stores open at least 13 months rose 1.9% across the group as a whole, below analysts' expectations of a 2% increase. In the U.S., sales grew by 1.2%, but operating income fell by 1%. In Europe, underlying sales were up 1.8%. Operating income fell 7%, but if the impact of the dollar is stripped out it rose 3%. The stronger dollar means international sales are worth less when profits are repatriated. Sales across the Middle East, Africa and the Asia-Pacific region grew by 1.4% as footfall rose, helped by solid trading in China and Australia. Chief executive Don Thompson said that while sales would carry on experiencing pressure, the company saw "significant long-term opportunities" for its brand and remained "confident in the underlying strength of our business model". Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Putin congratulates Pashinyan’s birthday Russian President Vladimir Putin congratulated Armenian Prime Minister Nikol Pashinyan on his birthday on June 1. Opposition motorcade en route to Gyumri for large rally A motorcade of protesters headed by Archbishop Bagrat Galstanyan is heading to the city of Gyumri. Ruling MPs, Foreign Minister talk Armenia-Azerbaijan processes MOs from the ruling Civil Contract party met with the Foreign Minister Ararat Mirzoyan in the Armenian parliament. Russia: Armenia’s frozen membership weakens CSTO position in Caucasus A Russian envoy said any step that could alienate the CSTO member states from each other is “deeply wrong”. |