McDonald’s cheers home delivery success as UK spurs sales rise
The group posted an 11% rise in 2017 global net profits to 5.2bn US dollars (£3.7bn) despite a 44% plunge in the fourth quarter after a tax hit.
Fast food giant McDonald’s has said New Year’s Day was the busiest day ever for its new home delivery service as it hailed its 47th quarter in a row of sales growth in the UK.
The US firm said McDelivery was now live in more than 270 restaurants nationwide after launching in the UK last summer.
UK boss Paul Pomroy said investment in “convenience” such as home delivery, table service and drive-thrus will continue to be key for the group in 2018.
The comments come as the group posted figures in the US showing an 11% rise in 2017 global net profits to 5.2 billion US dollars (£3.7 billion) despite a 44% plunge in the fourth quarter after a tax hit.
McDonald’s said fourth-quarter net income tumbled to 698.7 million US dollars (£495 million) after a 700 million US dollar (£496 million) blow from US President Donald Trump’s January 1 tax changes.
Fourth-quarter net income would have risen 12% in constant currencies to 1.4 billion US dollars (£99 million) with this impact stripped out, it said.
Mr Pomroy said: “2017 was a strong year for our business during which we achieved 47 consecutive quarters of sales and guest count growth in the UK, serving over a billion customers.”
He added: “We continue to listen to our customers – they told us they want ultimate convenience and that’s what we offer, whether that’s through our digital self-order screens, the ease of table service, the handiness of a drive-thru or one of our 24-hour restaurants, click and collect via our app, or home service through McDelivery.
“Continued investment in convenience will be key to our success this year.”
The group’s results show comparable global sales lifted 5.3% over 2017 and by 5.5% in the fourth quarter.
It said “continued momentum” in the UK helped drive a 6% rise in comparable sales for the international division in the fourth quarter.
Fourth-quarter operating income was 7% higher in constant currencies for the international arm.
The firm is revamping restaurants worldwide as part of its Experience the Future programme and plans to spend 2.4 billion US dollars (£1.7 billion) this year largely on the overhaul.
It has so far updated more than 1,000 UK restaurants as part of the plan.
McDonald’s also aims to open another 1,000 restaurants worldwide in 2018 to add to its existing 37,000-strong chain spanning over 100 countries.
And last month it launched a more healthy Meals Under range offering customers options for 400 and 600 calories.