Wednesday, August 06, 2008

McDonald's growing while Whole Foods shrinking

Earlier I noted how McDonald's is highly profitable in Europe. Well, more news about this, particularly as a contrast to other companies struggling in this global economic slowdown. The Guardian reports that,
McDonald's, one of Britain's largest low wage employers, is creating 4,000 new jobs in Britain to cope with increased demand for its keenly priced Big Macs, McNuggets and McFlurry ice creams.
While upmarket US healthfoods supermarket chain
Whole Foods may pull out of the UK altogether, McDonald's appears to be thriving in the economic downturn.
Its recruitment drive comes two weeks after McDonald's operations in the UK and France generated some of the strongest growth for the world's largest fast food chain. European comparable sales for the three months to June 30 rose 7.4%, with the UK and France slightly ahead of this figure.
The group's 1,200 owned and franchised outlets in the UK have seen a rise in the number of customers of two million a month.


And, Whole Foods shares have taken quite a beating. Bloomberg reports that the stock plunged $4.30, or 19 percent, to $18.62 at 9:42 a.m. in Nasdaq Stock Market composite trading, the biggest decline since November 2006. Earlier the shares fell to $18.26. The stock had lost 44 percent this year before today.

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