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McDonald's slims down
McDonald's has announced plans to cut back sharply on expansion next year and focus on the restaurant chain's existing portfolio.
The fast food giant, which has 30,000 company-owned and franchised stores worldwide, is struggling to combat falling sales. Net income for the three months to September 30 fell from $545.5m (£352m), or 42 cents a share, to $486.7m or 38 cents. 'This year certainly has proven to be even more challenging than we had anticipated,' said chief executive Jack Greenburg.
Annual openings reached a peak in 1996 at nearly 2,000, but only a net 600 outlets are expected to open next year, 450 fewer than this year's total.
McDonald's is planning to spend around $300m on renovating existing restaurants and $100m of expected savings on new buildings for US franchised restaurants, giving its best operators the opportunity to invest in the outlets or fulfil expansion plans. The company is also doubling its investment on brands such as Chipotle Mexican Grill and intends opening a further 150-175 partner brands in 2003. Details: www.mcdonalds.com
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