USA: As share values fall, McDonald's muscles away competitors
After a recent announcement in which US fastfood retailer McDonald's warned that full-year earnings on shares were hampered by weak foreign currencies, and particularly the euro, the New York Stock Exchange witnessed a rapid fall in the company's share value by 2.5%, or 69 cents, to US$26.5. Full-year earnings could be cut by 7 cents a share, 2 cents more than expected. Chief financial officer Mike Conley was anxious to stress that the amount was merely an estimate, and subject to change, and reiterated the company's plans to grow annual earnings per share by 10-15%.McDonald's has revealed that August sales figures have increased by 8% since 1999, although in Europe they fell by 4%. Chairman for the company, Jack Greenberg, was unfazed by the effects of weak currency in Europe. He commented: "Our global business remains solid and growing, and the US improvements in our business are beginning to show positive results in customer attitudes and food sales trends."
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