McDonald’s warns of headaches in US as overseas business booms
Giant battles rival chains at home
Bengaluru —McDonald's warned higher labour costs, expenses for remodelling stores and a stronger dollar would weigh on its earnings in 2019, after a strong performance outside the US powered better-than-expected fourth-quarter results. The world's biggest fast-food chain is still struggling in its home market, where it is battling a barrage of promotions from rival chains with offers ranging from $1 coffees to Uber Eats deliveries. That is being countered by the strength of a global operation which the company has modernised faster and that generated same-store sales growth of 4.4% in the fourth quarter, above expectations of 3.9% — and almost twice the figure of its 14,000 US outlets. “The persistent strength of non-US markets is especially impressive in light of slowing growth in China and economic softness in Europe, particularly in the UK where McDonald’s business appears nearly unstoppable,” said Bernstein analyst Sara Senatore. Shares of the company, however, pulled back from ...
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