News Blogger: Rises

Illinois, USA — MCDONALD’S said that a key revenue figure rose 1.9 per cent in August, driven by a strong performance in Europe. Its Monopoly promotion in the United States helped lift its performance there.

The world’s biggest hamburger chain reported the gain in revenue at restaurants open at least 13 months for the period ended August 31. That includes a 3.3 per cent increase in Europe, a 0.2 per cent rise in the US and a 0.5 per cent decline in Asia Pacific.This figure is a key gauge of a restaurant operator’s health because it excludes results from restaurants recently opened or closed.The monthly sales figure is a snapshot of the money spent on food at company-owned and franchised locations and does not reflect corporate revenue.While the metric improved for McDonald’s in August, it was slower growth than the 3.7 per cent increase in the prior-year period. But it was faster growth than the 0.7 per cent increase in July.The company, based in Oak Brook, Illinois, is trying to navigate a variety of challenges and has already said it expects the rest of this year to be challenging. To start, McDonald’s is facing intensifying competition from long-time rivals Burger King and Wendy’s, which have been revamping their menus and stepping up marketing.In addition, McDonald’s is trying to keep up with changing tastes by offering items people feel are fresher or healthier, such as its new chicken wraps and egg white breakfast sandwiches. But the chain has also been aggressively promoting its Dollar Menu and other deals at a time when it says people are being more careful about spending.And it said it has begun offering steak as an option for all breakfast sandwiches yesterday, including the McMuffin and biscuit or bagel breakfast sandwiches. The “steak on any” option has been rolling out to 9,600 McDonald’s restaurants in August and September.Analysts have expressed concern that the latter strategy could eat into profit margins. But last week, the chain said it was exploring a revamped Dollar Menu that includes items costing as much as US$5 that could go national this year.McDonald’s, which has more than 34,000 locations globally, is also trying to remind people of long-time favourites and has been featuring its Big Mac in TV and online ads. It also recently expanded its line-up of Quarter Pounders, saying it wanted to capitalise on the popularity of the burger.The 3.3 per cent increase in Europe of revenue at restaurants open at least 13 months was led by the UK, France and Russia. McDonald’s said that the UK responded well to new blended-ice drinks. The chain anticipates trying to build demand through limited-time offerings.In the US, the metric edged up 0.2 per cent, down significantly from the three per cent rise a year ago. McDonald’s said it plans on strengthening its US presentation with new products across its various menus and at different price points.The metric fell 0.5 per cent for the Asia Pacific region, Middle East and Africa on softness in Japan, China and Australia. The Oak Brook, Illinois, company said that it faced a tough prior-year comparison, when the figure climbed 5.7 per cent.McDonald’s shares rose 83 cents to US$97.28 in pre-market trading yesterday about a half-hour ahead of the market opening.

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McDonald"s key revenue metric rises in August

Thursday, September 12, 2013

China"s factory output rises in sign of recovery

Business

By APWednesday, September 11, 2013

BEIJING, China — CHINA’S factory output expanded in August at its fastest rate this year in a new sign the world’s second-largest economy is recovering from its deepest slump since the 2008 global crisis.Industrial production rose 10.4 per cent, accelerating from July’s 9.7 per cent, government data showed yesterday.The signs of economic revival will ease pressure on Chinese leaders who want to focus on longer-term structural reforms analysts say are needed to keep economic growth strong.“We have got a picture of a broad-based recovery from external demand to domestic demand, and from consumption to investment,” said Bank of America economists Xiaojia Zhi and Ting Lu in a report.Economic growth declined to a two-decade low of 7.5 per cent in the second quarter but trade, factory output, auto sales and other indicators suggest the slowdown is levelling out.Communist leaders want to nurture more self-sustaining growth driven by domestic consumption instead of trade and investment. They responded to the unexpectedly sharp decline in growth this year with higher spending on railway construction and a small business tax cut, but have resisted pressure for a more ambitious stimulus.Export growth accelerated to 7.2 per cent in August from July’s 5.1 per cent.Also in August, consumer inflation edged down to 2.6 per cent from July’s 2.7 per cent. Wholesale prices that have declined steadily for more than a year fell less sharply in another sign of growing demand.“With a number of other emerging markets mired in turmoil as the US Fed prepares to taper its QE programme, we believe China stands out as a relatively safer haven with its resilient growth, stable currency and strong balance of payments,” said Bank of America’s Zhi and Lu.A woman begs money from passersby at a pathway in Shanghai. China’s economy appears to be gradually rebounding from its deepest slump since the 2008 crisis, but analysts say improvement will depend on the strength of global demand for Chinese exports. (PHOTO: AP)

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China"s factory output rises in sign of recovery

Monday, August 26, 2013

Bolivia prison riot death toll rises

24 August 2013 Last updated at 18:50 ET A woman reads a newspaper in front of Palmasola jail on Santa Cruz, Bolivia, on 24 August 2013 Relatives are still waiting for a list of those killed in Friday’s riot The number of people killed as a result of a riot at a prison in eastern Bolivia on Friday has risen to 31.

Another 37 inmates were seriously injured when fighting broke out between rival gangs inside the jail.

Most of the victims burned to death after inmates blew up two propane tanks and used others as flamethrowers.

Among those killed is an 18-month-old toddler, one of the many children living in the prison with its incarcerated parents.

Inferno

Under Bolivian law, children under six years of age can stay in jail with their parents if there is no other relative to look after them.

The authorities have so far not released a list of those who died in the riot at Palmasola prison outside the city of Santa Cruz. Palmasola is Bolivia’s largest jail.

Relatives and friends of inmates have been waiting outside the prison for news. The latest victim died on Saturday of burns sustained during the riot.

Interior Minister Carlos Romero said the violence started when inmates in one cell block knocked a hole in the wall separating them from another block.

They then attacked their rivals with propane gas tanks, machetes, knives and sticks.

The fire spread quickly as straw mattresses were set alight. Guards took several hours to put out the fire and regain control of the prison.

Some prisoners jumped off the roof to escape the flames.

President Evo Morales has ordered an investigation into the incident.

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Bolivia prison riot death toll rises