Newspaper article Evansville Courier & Press (2007-Current)

Even McDonald's Hurt by Global Slowdown

Newspaper article Evansville Courier & Press (2007-Current)

Even McDonald's Hurt by Global Slowdown

Article excerpt

McDonald's, the world's largest hamburger chain, has thrived in boom and bust times by selling cheap eats and constantly updating its menu with popular items such as fruit smoothies and snack wraps. But the company is starting to show signs of wear and tear from global economic pressures, intensifying competition and penny- pinching customers who are eating out less often in some hard-hit regions around the world. The Oak Brook, Ill.-based company said Monday that its net income fell 4 percent in the second quarter as a strong dollar ate into results.

When the dollar is strong, international sales translate into fewer dollars back at home. That's problematic for McDonald's, which does two-thirds of its business overseas. Making matters worse, the dollar hit a two-year high against the euro Monday amid ongoing fears that Spain may need a government bailout.

McDonald's is also facing higher costs for labor and ingredients, although it said it now expects commodity costs to rise between 3. …

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