The heading translates to:
"The world's leading fast-food company McDonald's reported a revenue growth of 3.4 percent in the fourth quarter of the last year compared to the same period the previous year. The company announced this on Monday in Chicago."
Though experts had expected higher figures, expectations had already been tempered by corporate chief Chris Kempczinski due to the Gaza conflict. One-tenth of McDonald's revenues come from the Middle East.
Currently, branches of the US burger chain are being boycotted in Muslim-majority countries. Even in other countries, the business did not grow as strongly as experts had predicted. In the past, management attributed this to subdued consumer sentiment due to inflation. Additionally, growth is hampered by the slowed economy in China.
"However, last year the company still recorded a 10 percent increase in revenue to approximately 25.5 billion US dollars (23.6 billion euros). The operating profit even grew by almost a quarter to 11.6 billion dollars. Without exceptional factors, the operating profit would have increased by 16 percent."
Primarily responsible for the difference was the withdrawal from the Russian market in 2022, which had impacted the result. Net profit increased by 37 percent to just under 8.5 billion dollars.
Corporate Chief Kempczinski emphasized in a statement that the business remains resilient despite the challenging economic situation. In a teleconference on Monday, the management is expected to provide additional details and an outlook for the current year.
The NYSE-listed McDonald's stock records a pre-market loss of 1.62 percent to $292.05.
The Gaza War and its associated consequences have thus had significant effects on McDonald's business results. In the future, the company must also reckon with the challenges of the political situation in the region and economic uncertainty in other countries.
Nevertheless, management remains optimistic about the future and will continue to strive to maintain McDonald's resilient business model.
