McDonald’s
warns of restaurant closures in 10 countries BSE cow disease contributed to
poor performance
Nov. 11, 2002,
just-food.com: Burger-based fast-food chains
are seeing a slump in near-term profits and longer-term
prospects. McDonald’s plans to withdraw from three
countries in the Middle East and Latin America and close
175 restaurants in 10 countries.
Up to 600 jobs will be cut – 250 in the U.S., where
sales of continuing products have dropped 2.8 percent
in the past year.
A price war with Burger King and Wendy’s has hurt
all three firms. Burger King is for sale by its owner,
Diageo, while Wendy’s admits its 2002 earnings projection
was too optimistic.
McDonald’s has also attributed it poor financial
performance to the impact of the cow disease BSE in Japan
and Europe. The announcement closely follows the company’s
decision to cut back on new store openings next year.
McDonald’s also warned that its fourth-quarter earnings
would be lower than previously forecast.
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