Brexit Seen Affecting Global Restaurant Brands
June 24 2016 - 12:27PM
Dow Jones News
By Julie Jargon
Multinational restaurant companies are likely to feel the impact
of Britain's exit from the European Union on their bottom line.
McDonald's Corp. has the greatest exposure to the U.K. and
Europe of any U.S.-based restaurant company, with approximately 35%
of its operating profit generated in Europe, compared with 4% for
Starbucks Corp. and 6% for Yum Brands Inc., the parent company of
KFC, Pizza Hut and Taco Bell. Approximately 37% of McDonald's
revenue comes from Europe and 9% comes from the U.K.
"While currency translation is likely going to be a headwind to
earnings, we also wonder how much overall economic uncertainty
might weigh on the consumer mind-set in the near term," RBC Capital
Markets analyst David Palmer said in a research note.
McDonald's and Yum Brands didn't immediately respond to requests
for comment. Starbucks said it "remains fully committed to the
U.K." and that it is "continuing to pursue significant growth plans
for the U.K." The coffee giant's Europe, Middle East and Africa
headquarters is in London, and it has 850 stores in the U.K., its
largest market in Europe.
Write to Julie Jargon at julie.jargon@wsj.com
(END) Dow Jones Newswires
June 24, 2016 12:12 ET (16:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
McDonalds (NYSE:MCD)
Historical Stock Chart
From Mar 2024 to Apr 2024
McDonalds (NYSE:MCD)
Historical Stock Chart
From Apr 2023 to Apr 2024
