McDonald's profit held back by cost rises

Fast food restaurant chain McDonald’s posted a net profit worth 29 million RON (7.8 million euros) last year, similar to that reached in 2007, while its turnover went up 30% in RON, from 307 million RON (92.1 million euros) in 2007 to over 400 million RON (108 million euros) in 2008. “Things have changed, we ourselves are in a delicate position due to the depreciation of the RON and to the raw material price increase by 7-8% in 2008, however, we increased salaries by 25% on average last year, we invested in new restaurants and in renovating, and we negotiated prices with suppliers. Although these (investments) have slowed down the profit rise, they will ensure a two-digit sales growth in 2009,” Cristian Savu, the company’s communication manager told ZF. Although for the time being he is not sure this year’s turnover growth rate will match or surpass the 2008 level, Savu announces at least four openings in the coming period, two of which in Bucharest and Sibiu. “We are in final negotiation stages for the acquisition and construction of other locations, as well, but what we will not finish in 2009, we will continue next year,” added Savu.