McDonald 8217 s profits slide as strong dollar hits earnings

McDonald's slipped on the New York Stock Exchange at close of play on Friday (October 19th) on worse-than-anticipated profits for the July-September period.

The fast food franchise – which is one of the most recognisable brands in the world – witnessed its net income fall to $1.4 billion (£911 million) for the quarter, down from $1.5 billion a year before.

Increasing competition and the strength of the dollar are to blame for these losses, with total sales barely changing at $7.15 billion, which is down from $7.17 billion last year.

Dan Thompson, chief executive at McDonald's, said sales had started at a lower level than last year in October, but while demand remained under pressure, the business saw "significant long-term opportunities" for its brand and was still "confident" in the strength of its business model.

At close of play on New York Stock Exchange on Friday, McDonald's slipped by 4.4 per cent to $88.7 per share.

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