HUNGARY: The chips are down for McDonald's profits
The managing director of McDonald's 73-strong restaurant chain in Hungary revealed to the press on Tuesday (26 September) that it is still losing money. Branislaw Knezevic explained that because long-term investments in the fastfood chain now totalled US$100m, overall profit was negligible, or even negative. The poor returns are set to continue as the 6% price increase does not reflect the country's inflation rate, or the dramatic rises in production costs. The US fastfood behemoth is purchasing 90% of its raw materials on the domestic market, and has planned further investments of US$20m to ensure the local availability of materials of its French fries and fish fillets.The company anticipates a turnover of HUF18bn for this year, which represents 22% growth since 1999. It may be several years yet, however, before McDonald's can expect some tasty returns.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Nestle India grows with global, digital innovation
- Lamb Weston goes it alone: six things to learn
- How Nestle tackles Indian challenges - interview
- Analysis: Tyson's shrewd investment in Beyond Meat
- Thailand: convenience to continue to thrive
- Mars launches Maltesers in the US
- Campbell backs US nutrition start-up Habit
- Bel takes majority stake in MOM Group
- Mondelez focuses on margins as sales slip
- Nestle's Buitoni to remove GMOs
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Packaged Food: Quarterly Statement Q3 2016
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Meat Processing in China - Industry Market Research Report