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 17 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
- Analysis: Post discusses rationale for Weetabix
- Interview: Sir Kensington's on sale to Unilever
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- US food next wave on display at Winter Fancy Food
- Unilever buys US condiments maker Sir Kensington's
- Ice cream helps Unilever sales, food flat
- Suntory to offload Australia, New Zealand foods
- Nestle organic growth slows but beats expectations
- Equistone puts Whitworths up for sale