United States-McDonalds Growing Rapidly

Farming UK:

McDonald’s Corp. has been one of the world’s most successful big companies during this recession. On Monday, the fast-food giant posted February sales results that most chains would envy.

But the worsening global economy has McDonald’s preparing for a more difficult year. The strengthening U.S. dollar is knocking the wind out of McDonald’s profit-generating power. While Americans are flocking to McDonald’s as a cheap alternative to sit-down meals, that’s not the case in some parts of Europe and Asia.

How McDonald’s tackles these challenges falls to Ralph Alvarez, a Cuban-born former accountant who is McDonald’s president and chief operating officer. Mr. Alvarez, 53 years old, has helped the Golden Arches extend a six-year success streak with his focus on improving restaurant operations, adjusting prices and keeping down costs. He is widely expected to succeed Chief Executive Jim Skinner once the 64-year-old retires.

Mr. Alvarez is pruning gas-guzzling cars from the company fleet, pressing media buyers to negotiate lower advertising rates and putting the brakes on building new outlets on street corners where nearby development shows signs of weakness. At the same time, he’s overseeing big investments in the most promising aspects of McDonald’s business — coffee drinks that compete with Starbucks and improved drive-through windows that increase sales and efficiency. To check on operations, he disguises himself in a baseball cap and sunglasses and visits McDonald’s outlets unannounced.

In February, McDonald’s same-store sales world-wide increased 5.4%, after stripping out a calendar shift from last year’s leap year. By that measure, U.S. same-store sales rose 6.8%, while sales in Europe increased 4% and rose 4.1% in the region that includes Asia Pacific, the Middle East and Africa.

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