Profits fall as Americans lose taste for McDonald's

FAST-food chain McDonald's saw its full-year profits drop 32 per cent to £1.2 billion as Americans cut back on the Big Macs and the company took a one-off hit for the sale of some operations in Latin America.

But total revenues over the year climbed nine per cent to £11.5 billion as sales elsewhere offset sluggish US restaurants, which the burger giant blamed on "softer consumer spending" in the world's biggest economy.

Over the last quarter, however, net profit rose to £640 million, from £624m in the same quarter a year ago, and sales were up by six per cent to £2.92bn. In the US, like-for-like sales rose 3.3 per cent, compared with a "double digit" increase in Europe.

Nevertheless, bosses at the world's largest fast-food chain said they remained confident about prospects for their home market, its biggest base with close to 14,000 restaurants.

Jim Skinner, chief executive at the Illinois-based group, said: "While we generate better results in a booming economy like everyone else, we've navigated through tough times before and we're confident that we can do it again."