European BSE crisis to hit McDonald's profits

McDonald's, one of the world's biggest food brands, admits that concerns over BSE in European beef will make trading very challenging in 2001.

Other problems include an extra trading day in 2000 and outstanding results.

Chairman and chief executive officer Jack M Greenberg said he expected earnings per share growth in 2001 to be between 10% and 13% - excluding the impact of foreign currency exchange - for earnings per share of between $1.60 and $1.65.

The effects of foreign currency exchange is expected to cut 2001 earnings per share by about one cent.

McDonald's said fourth quarter earnings per share came in at 34 cents, compared with 35 cents in the same period last year and a forecast consensus among analysts of 35 cents.

Meanwhile, revenues for the period were $9.924bn, compared with $9.749bn last time.

Total revenues for the full year to December, 2000, came in at $14.234bn, compared with $13.259bn for the previous year, with earnings per share of $1.46, compared with $1.39.

Greenberg added that the group planned to add about 1,700 restaurants in 2001 - including about 1,600 McDonald's restaurants (excluding dessert-only kiosks).