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Last Updated: Friday, 21 April 2006, 15:51 GMT 16:51 UK
McDonald's profits down, sales up
McDonald's sign
McDonald's has introduced new meals in its restaurants
Fast food giant McDonald's - which has revamped its menus - has said first quarter revenues are up, thanks to US breakfast sales and European business.

It has been rolling out new food items over the past three years, and saw revenues rise 6% to $5.1bn.

McDonald's "continued to connect with customers and increase the relevance of our brand", chief Jim Skinner said.

Profits were down 14%, the biggest fall since 2002, mainly due to a tax benefit received in the same period a year ago.

Shake-up

During the first quarter the burger chain introduced spicy chicken sandwiches and premium coffee in its US. restaurants, and Asian chicken salad was put on the menu this month.

McDonald's launched its global "Plan to Win" revitalisation strategy in 2003, which saw the company revamp its brand, refurbish its stores and introduce healthier menus including salads.

Its new "I'm lovin' it" slogan has helped to increase sales in many parts of the world.

McDonald's also extended opening hours, renovated its restaurants. and allows customers to pay with credit and debit cards.

Closing outlets

The firm says sales have now risen 35 months in a row at restaurants that have been open for at least 13 months.

However back in February, McDonald's said it was closing 25 branches in a bid to improve profits at its struggling UK operations.

Revealing its figures, the burger firm said net income was $625.3m(351m) for the three months to 31 March, compared with $727.9m a year before.

Then, results were boosted by an audit settlement of the company's 2000-2002 US tax returns that added 13 cents a share.


SEE ALSO:
McDonald's to close 25 UK outlets
28 Feb 06 |  Business
McDonalds lets families share job
26 Jan 06 |  Business
McDonald's global sales top $20bn
24 Jan 06 |  Business
McDonald's puts fat facts on food
25 Oct 05 |  Business
McDonald's seeking star makeover
06 Jul 05 |  Business


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