McDonald's sees Europe as best growth market
21 August 2007, Berlin (dpa) - US fast-food chain McDonald's is to focus on expansion in Europe, which it sees as the market with the greatest potential, the Financial Times Deutschland (FTD) reported Tuesday.
21 August 2007
Berlin (dpa) - US fast-food chain McDonald's is to focus on expansion in Europe, which it sees as the market with the greatest potential, the Financial Times Deutschland (FTD) reported Tuesday.
The company said it planned to invest 800 million dollars in Europe over the course of 2007, as much as it was investing in its US home market.
The chain would move away from its hamburger image towards providing regional specialities, McDonald's chief operating officer Ralph Alvarez told the financial daily.
"At the moment, Europe is the most exciting region for us," he said.
Alvarez made clear that McDonald's remained a US brand, "but we must become more European."
Along with a shift away from hamburgers would come a restyling of the restaurants.
McDonald's had seen turnover lag in Europe until recently, with health concerns playing a role, Alvarez told the FTD.
But recent figures had provided encouragement for increased investment.
In the first six months of the year, McDonald's European operation turned over 4.1 billion dollars in its 6,400 outlets.
This contrasted with just 3.9 billion dollars from 13,800 US restaurants.
Soups and speciality coffees had contributed to increased growth in Europe, Alvarez said.
Subject: German news