Avian Influenza cited in McDonalds profit drop
US fast-food giant, McDonald’s have announced that global comparable sales decreased 0.6% in April and cite the outbreak of Avian Influenza in China as a cause.
The performance results for April saw US profits up 0.7%, Europe down 2.4% and Asia/Pacific, Middle East and Africa (APMEA) down 2.9%.
In April, APMEA’s comparable sales declined 2.9%, reflecting the impact of Avian influenza, primarily in China, and softer results in Japan and Australia. Across the region, McDonald’s is striving to improve performance by emphasising unique value platforms, accelerating growth at breakfast and enhancing customer service and convenience.
Meanwhile competitors in the fast food market are also experiencing difficulties due to the Asian bird flu outbreak. Yum Brand has reported that same-store sales in its KFC restaurants on the mainland of China plunged 29% last month as concerns about the safety of its chicken and the spread of bird flu prompted customers to stay away from its KFC restaurants.
While the company said the publicity fuelling the sales collapse would be “relatively short-lived”, the perceived safety of KFC food is only one of the challenges Yum now faces in its biggest overseas market.
