Fast food giant’s net income drops to €613.2m

MCDONALD’S, the world’s largest restaurant chain, said third-quarter profits fell 5.5% after a tax gain in the year-earlier period.

American sales increased at the slowest pace in two-and-a-half years.

Net income dropped to $735.4 million (€613.2m) from $778.4m a year earlier. Global sales however climbed 8.1% to $5.33 billion, the Illinois-based company said.

Sales grew fastest in Europe, McDonald’s largest market after America, as a discount menu in Germany and toasted deli sandwiches in Britain spurred demand.

A year earlier, net income surged 42% after menu additions in America lifted sales. A lower tax rate resulted in a gain of 7 US cents a share.

Sales at European restaurants open at least a year climbed 5.1%, the best performance since 2000. Gains of 3.7% in America and 3.5% in the Asia/Pacific, Middle East and Africa regions resulted in a global same-store sales increase of 4.1%.

Shares, which have risen 5.1% this year, are on course for their worst performance since 2002.

In September, McDonald’s offered free samples of its new toasted deli sandwiches in Britain, where it also increased advertising to promote menu items such as salads as fresh and nutritional.

Comparable-store sales in Britain increased for the first month since March, while sales climbed in France and Germany, spurred by a Big Mac promotion and two-for-one coupons.