Les Échos — McDonald's still a hit on the stock market

McDonald's Les Echos Friday 3 November 1995 CATERING Since the start of the year, the McDonald's share has been well oriented on the American and French markets. The latest quarterly accounts confirmed sales growth. McDonald's is still making money on the stock market sentiellement auprès de fournisseurs lo- Since the start of the year, the share of McDonald's, the world number one in fast food, has recorded a 41% rise in an American market up 24.3%. Close to its highest price of the year - 42 dollars on 25 October last -, the stock was quoted yesterday during trading at 41 3/8 dollars. A rise that is found to a lesser extent on the Paris stock exchange, where the share showed yesterday evening a rise of 28.7% since the start of the year. "In a context of economic slowdown, McDonald's, which practises an economy-priced type of catering, is the defensive stock par excel- lence," noted Lucette Shirai, specialist in the American market at Indosuez Asset Management. "The stock is trading at 19 times 1996 earnings, and investors grant it a premium of 10% to 15% over the American market," says a manager of a mutual fund specialising in American stocks. Once again, McDonald's has recorded results up over the first nine months of the 1995 financial year. At the end of September, the turnover of McDonald's reached 7.2 billion dollars (that is 35.1 bil- lion francs), an increase of 19%. As for net profit, it stood at 1 billion dollars, in Mac Dowald's Excolas à Natifort. caux, the various subsidiaries of the group thus remain little affected by the prob- lems linked to the exchange rate," he adds. "Outside the United States, the core markets are today divided into three major geographical zones: Europe, Latin America and Asia-Pacific," stresses Philippe Labbé. As for "emerging markets," they are named, for the maker of the "Big Mac": Middle East and North Africa. Jany. - share price nBY. 400 restaurants in France In accordance with the strategy laid down by the American parent company, McDo- nald's France is pursuing its policy up 16%. These results are explained, among other things, by a strong pro- of establishment. Having recently passed gression of international activities, the 400-restaurant mark, McDo- combined with a favourable exchange nald's France plans to open in effect. Thanks to its 6,450 restaurants mainland France some sixty restau- open in 83 countries (outside the rants over the next four to five years. United States, which total 10,953), the In the meantime, the group still maintains group currently generates 30% of tense relations with the its sales and 45% of its profits unions. Regarding the abroad. "This international position of the group professional elections at McDonald's France, thus enables us to spread the risk between the different annulled on Monday by the courts, at the economies worldwide," stresses Philippe Labbé, vice-president and request of the CGT, the CFDT declared chief financial officer of McDonald's yesterday: "It is a bad blow to France. In addition, "thanks to a procurement trade unionism, which comes to reinforce the strategy policy carried out es- of a company that claims to hold sentiellement auprès de fournisseurs lo- sole legitimacy in matters of employees' rights." LAURENCE BOCCARA