Wednesday, 22 October 2014
McDonald's and Coca Cola see profits fall sharply !
Two US food and drink titans have posted sharply lower profits for the July-to-September quarter.
McDonald's saw earnings fall 30%, while Coca-Cola's fell 14%, with both citing lower US sales as key reasons.
The fast-food chain's profits of $1.07bn (£661m) were also hit by a food scandal in China, contributing to a 4.6% fall in revenues to $6.99bn.
Meanwhile, the world's largest drinks group made a $2.1bn profit on revenues that were broadly flat at $11.9bn.
McDonald's US sales have been under pressure as consumers switch to other chains, notably the fast-growing Chipotle Mexican Grill.
Sales also fell in Russia, Germany and especially in China, where McDonald's was hurt by a scandal over meat supplies.
Chief executive Don Thompson admitted that the trading performance was not good enough. "McDonald's third-quarter results reflect a significant decline versus a year ago," he said.
"By all measures, our performance fell short of our expectations."
More on this story here.Looks like the message is getting through, people are turning to healthier alternatives. How long before junk food stocks become junk status investments ?