NPD and refurbs boost McDonald’s sales

McDonald’s new product launches and the continued refurbishment of its restaurants led to a 5% uplift in European sales for the third quarter.

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The fast food restaurant says investment and innovation led to the UK division’s 22nd consecutive quarter of growth. In Europe, operating profit increased 15% year on year.

McDonald’s does not break down specific regional financial figures, but global operating profit rose 14% to $2.4bn (£1.5bn) for the quarter. Revenue increased 14% to $7.2bn (£4.5bn).

The company opened its 1,000th refurbished store in Chelmsford this week (pictured below) and says the rollout of new store designs has been “significant” to the success of the quarter.

McDonald’s also launched a series of new products in the quarter, including its Breakfast Wrap, Shake ‘N’ Taste Chicken and The 1955 Burger. The company has also invested heavily in contactless payment and says that McDonald’s sales now account for 50% of all contactless transactions in the UK.

UK chief executive officer Jill McDonald says: “Investment and innovation has been the key to our sustained growth. Whether it be offering our customers a new and convenient way to pay; creating a fresh, modern and relaxed environment which welcomes our customers; or innovation on our menu – we are constantly listening to what customers want and responding.”

Earlier this month McDonald’s launched the latest phase of its brand campaign, which aimed to communicate that its products are an “iconic” part of British life.

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