McDonald’s reports global lfls up 8.8% in third quarter with UK seeing strong growth: McDonald’s has reported its global like-for-like sales rose 8.8% in its third quarter to 30 September 2023 compared with the previous year. Digital systemwide sales in its top six markets were nearly $9bn for the quarter, representing more than 40% of total systemwide sales in those markets. Chief executive Chris Kempczinski said: “With global systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader. The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers. Thanks to the entire McDonald's system's outstanding execution of Accelerating the Arches, we remain confident in our future and the strategic direction of our business.” US third-quarter like-for-like sales were up 8.1%, marking the tenth consecutive quarter of like-for-like sales growth for the market. McDonald’s said comparable sales benefited from strong average transaction value growth driven by strategic menu price increases. Successful restaurant level execution, effective marketing campaigns and continued digital and delivery growth contributed to strong comparable sales results, the company said. Third-quarter like-for-like sales for the “international lead” segment, which includes the UK, were up 8.3%. McDonald’s said segment performance was driven by strong comparable sales in most markets, led by the UK, Germany and Canada. In the international developmental licensed segment, third-quarter like-for-like sales were up 10.5% with “strong comparable sales in all geographic regions”. Total revenue was up 14% to $6,692.2m from $5,872.1m the previous year. For the year so far, revenue is up 11% to $19,087.5m compared with $17,256.1m 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 215 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.
Sky News – PizzaExpress hires Goldman after proposal to take slice of Wagamama owner TRG: PizzaExpress tabled a secret proposal to reverse into Wagamama’s London-listed parent earlier this year, setting the scene for it to gatecrash an agreed private-equity takeover of the company. Sky News reported Wheel Topco, which owns PizzaExpress Group, lodged the idea of a combination with The Restaurant Group's (TRG) board several months ago. As part of the deal, Wheel's shareholders would have taken a sizeable equity stake in TRG if a transaction had been agreed. City sources said PizzaExpress was now working with Goldman Sachs on its interest in TRG, which could lead to it making an offer for the company. TRG, which also owns the Brunning & Price pub chain, confirmed last week that it had received renewed contact from Wheel Topco following a report by Sky News. In a stock exchange statement, the Wagamama-owner said it had “received a request within the last week from Wheel Topco…for diligence information on the company…to enable Wheel Topco to evaluate a possible offer for the company”. PizzaExpress’ owner has yet to make a public statement about its potential interest, while the earlier proposal has not been disclosed by either party. Earlier this month, TRG agreed to be bought by Apollo Global Management for just over £500m. PizzaExpress is controlled by a group of debt funds including Bain Capital Credit and Cyrus Capital Partners, which took ownership in 2020. Prior to that, it was owned by China's Hony Capital. Allan Leighton, PizzaExpress’ chairman, previously chaired Wagamama during its ownership by the private equity firm Duke Street, and engineered its sale to TRG in 2018. He then spent a brief period on TRG's board. Under the terms of Apollo's 65p-a-share offer, a rival bid would need to be at least 10% richer for irrevocable shareholder undertakings to lapse. Oasis Management, an activist hedge fund which had pressed for boardroom and strategic changes at TRG for months, has said it will vote its near-18% stake in favour of the deal. It was unclear at what price PizzaExpress might contemplate bidding, or how it would finance an offer. Last month, TRG announced the sale of its leisure division, which includes Chiquito's and Frankie & Benny's, to The Big Table Group, which is backed by the buyout firm Epiris and includes Banana Tree, Bella Italia, Cafe Rouge and Las Iguanas in its portfolio. It is unclear whether Andy Hornby, TRG's chief executive, would remain in place under Apollo's ownership.
