McDonald’s sales up in key markets, but it takes a hit from US tax reform
New York — McDonald’s reported higher comparable sales in the final three months of the year in the US, China and other key markets, but earnings were dented by a one-time hit from US tax reform. Net income was $698.7bn in the fourth quarter, down 41% from the year-ago period, hit by $700m due to taxes on repatriated earnings following the US tax reform passed in December. Revenues fell 11% to $5.3bn following the sale of company-owned restaurants to franchisers. McDonald’s cited a "strong consumer response" to its new Buttermilk Crispy Tenders chicken dish and its promotional McPick 2 products as factors in a 4.5% rise in US comparable sales. Among growth-oriented countries, China scored a 4% rise in comparable sales, but this was partly offset "by continued challenges in South Korea", the company said. Globally comparable sales increased 5.5% during the fourth quarter. CEO Steve Easterbrook has focused on improving restaurant appearance and service and, more recently on ramping up...
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