20 Oct 2012

McDonald's Q3 profits down

1:11 pm on 20 October 2012

McDonald's has reported a fall in profits for the third quarter, after being hit by the strength of the dollar and increasing competition.

Net income fell to $US1.46 billion, down from $US1.51 billion a year earlier.

The BBC reports total sales were barely changed at $US7.15 billion, down from $US7.17 billion last year.

Chief executive Don Thompson said October sales began at a lower level than the same time last year.

In the United States, sales grew by 1.2%, but operating income fell by 1%. Operating income from Europe fell 7%.

The stronger dollar means international sales are worth less when profits are repatriated.