McDonald’s reports global lfls down 1.5% in third quarter with UK seeing fall in sales: McDonald’s has reported its global like-for-like sales fell 1.5% in its third quarter to 30 September 2024 compared with the previous year – with the UK also seeing a drop in sales. It is the second successive quarter that global like-for-likes have dropped. Systemwide sales to loyalty members across approximately 50 loyalty markets were more than $28bn for the trailing 12-month period and nearly $8bn for the third quarter. Chief executive Chris Kempczinski said: “We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending. McDonald’s will continue to follow our Accelerating the Arches playbook to drive long-term growth globally and win in this environment.” US third-quarter like-for-like sales were up 0.3%. McDonald’s said comparable sales benefited from average transaction growth, partly offset by slightly negative comparable visits. The company added “effective value and marketing campaigns featuring the core menu, successful restaurant level execution and continued digital and delivery growth” contributed to slightly positive comparable sales results. Third-quarter like-for-like sales for the “international lead” segment, which includes the UK, decreased 2.1% with segment performance impacted by negative comparable sales across a number of markets, driven by France and the UK. In the international developmental licensed segment, third-quarter like-for-like sales fell 3.5%. McDonald’s said the continued impact of the war in the Middle East and negative comparable sales in China more than offset positive comparable sales in Latin America. Total revenue was up 3% to $6,873m from $6,692m the previous year. For the year so far, revenue is up 2% to $19,532m compared with $19,088m the previous year. McDonald’s features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and is available exclusively to Premium subscribers. The database is updated every two months and the latest version features 270 businesses. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Camerons Brewery refinances and secures new funding to support strategic growth strategy: North east brewer and pub operator Camerons Brewery has refinanced and secured new funding to support its strategic growth strategy. The undisclosed amount has come via Sandton, a London and New York-based investment fund provider, and IGF, a UK independent lender. The comprehensive financial package includes the refinancing of the company’s existing debt and the provision of new working capital. This will support plans to invest in the group, which consists of two business operations – one of the largest independent contract brewers in the UK and an estate of 44 pubs and bars, which includes its flagship Head of Steam and Urban Country Pub brands. David Soley remains chairman of the business, with Chris Soley running it as chief executive officer, supported by chief financial officer John Foots. Chris Soley said: “The business has performed well despite the challenges that hit our industry in recent years, and we are now well placed to take the business forward again. This investment demonstrates confidence in Camerons Brewery and recognises the financial strength of our business and our focused strategy for profitable growth. We’re excited for what is ahead, seeking to grow our position as a leading contract brewer and invest into our existing pubs and open new locations in new cities throughout the UK.” Toby Bundy, investment manager at Sandton, said: “Camerons Brewery has a long trading history with a strong profit and loss supported by an excellent management team. The team have exciting plans to grow its business and invest in its current pubs and expand its estate.” Richard Spielbichler, director at IGF, added: “This collaborative approach and shared vision for future expansion and long-term sustainability are exciting for the business and the wider industry.” DLA Piper, Shoosmiths and Weightmans advised on the transaction. Earlier this month, Propel revealed that the total consideration for Camerons’ sale of 26 pubs to FB Taverns earlier this summer was £8.25m. However, the business said the sale resulted in a book loss of sale, leading it to book an impairment charge of £4.2m in the year to 1 January 2023. In the year to the end of 2022, the business posted turnover of £62m, compared with £49.3m for the eight months to 2 January 2022, with underlying Ebitda of £3.6m, up circa £400,000 on the previous 12 months. Pre-tax loss in the 12 months to the end of 2022 stood at £5.51m (2021: £495,958).