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Stronger dollar hits McDonald's

23 July 09 22:07 GMT

McDonald's has reported a fall in profits between April and June, as the strong dollar hit overseas revenue.

Net profit at the US fast-food giant, the world's largest hamburger chain, was $1.1bn (£666m), down 8% on the $1.2bn recorded a year ago.

Taking out the effect of the strong dollar, however, the chain said revenue actually increased on last year.

On a day when US stocks rose sharply, McDonald's fell by 4.5%, the second biggest faller in the Dow Jones index.

'Confident'

Like-for-like sales - those from stores open more than 12 months - were up in all regions and rose by 3.5% in the US.

"I am pleased with our results and remain confident in our outlook for the year," said McDonald's chief executive Jim Skinner.

Analysts said the chain had become a victim of its own success.

"The problem is that good isn't good enough for these guys," said Larry Miller at RBC Capital Markets.

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