Does McDonald’s Have a Bright Future?
T = Trends for a Stock’s Movement
McDonald’s franchises and operates McDonald’s restaurants in the United States, Europe, Asia Pacific, the Middle East, Africa, Canada, and Latin America — so just about every part of the world. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The products provided by McDonald’s fulfill cravings at competitive prices in convenient locations worldwide. The McDonald’s craze shows no signs of slowing, so the company has continued its expansion to just about every nation on the globe. As consumers continue to enjoy McDonald’s products, look for it to see rising profits.
McDonald’s desperately needs some McLovin’ in Japan. McDonald’s Holdings Co. Japan Ltd. released its full-year profit outlook on Thursday, and according to Bloomberg, said that it is cutting its profit forecast by more than half. Japan is McDonald’s second largest market, behind the United States, but the fast food chain now only expects a net income of 5 billion yen ($48 million) in the country, reflecting a 57 percent cut from its previous full-year forecast. Analysts expected McDonald’s Japan to report a net income of 9.53 billion yen from the 3,170 stores it operated in the country as of the end of October. According to Bloomberg, McDonald’s Japan said, “The number of customers during the first quarter was well below the company’s expectations,” attributing the poorer-than-expected full-year forecast to everything from investment costs to slow customer traffic to costs on store closures.