McDonald's enjoys supersize revenue boost

RISING sales in the UK, France and Germany helped McDonald's to post a better-than- expected 7 per cent in like-for-like global revenue during July.

Longer opening hours and the continuation of the fast-food chain's refurbishment scheme led to a 5.3 per cent increase in like-for-like sales in Europe.

The launch of the company's McCaf fruit smoothies and frappes led to a 5.7 per cent rise in the United States.

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The fast-food giant has been grabbing market share from its rivals, such as KFC-owner Yum Brands, which recently reported flat like-for-like sales at its US restaurants.

McDonald's roll-out of espresso-based coffee and other high-margin drinks - such as frappes - is exceeding the company's goal of adding $125,000 (78,300) of sales per outlet.

The group's beverage expansion was seen as a direct attack on the core business of coffee shop chain Starbucks but so far the two companies appear to be appealing to different diners, analysts said.