Europeans tuck in as burger sales slide in US

   Date:2008/04/23     Source:

HAMBURGER chain McDonald's said yesterday that first-quarter profits had risen more than analysts estimated after gains in Europe blunted the first drop in United States comparable-store sales in five years.

Net income advanced 24 percent to US$946.1 million, or 81 cents a share, from US$762.4 million, or 62 cents, a year earlier, the Illinois-based company said. The dollar's decline boosted profit by 5 cents a share. Revenue increased 6.1 percent to US$5.61 billion.

Sales at European outlets jumped 11 percent in the quarter, as France, the UK and Germany led a record gain for the region. US sales fell 0.8 percent in March, the first decline since March 2003.

Analysts surveyed by Bloomberg News estimated McDonald's would earn average profit of 70 cents. They projected revenue of US$5.44 billion.

McDonald's fell 2.2 percent in trading before the New York stock bourse opened.

Sales in Asia, the Middle East and Africa increased 9.4 percent.

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