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Morning Briefing for pub, restaurant and food wervice operators

Wed 5th Nov 2025 - Update: McDonald’s and Arc Inspirations results
McDonald’s reports global like-for-likes up 3.6% in third quarter with UK seeing growth: McDonald’s has reported its global like-for-like sales increased 3.6% in its third quarter to 30 September 2025 compared with the previous year – with the UK also seeing growth. Global systemwide sales were more than $36bn for the quarter, an increase of 8% on the previous year. Systemwide sales to loyalty members across 60 loyalty markets were approximately $34bn for the trailing 12-month period and more than $9bn for the quarter. Chief executive Chris Kempczinski said: “We increased global systemwide sales by 6% and grew comparable sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment. We're fuelling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors.” US third quarter like-for-like sales were up 2.4%, which McDonald’s said was primarily driven by average transaction growth. Third quarter like-for-like sales for the “international lead” segment, which includes the UK, increased 4.3%. McDonald’s said all markets reflected positive comparable sales, led by Germany and Australia. In the international developmental licensed segment, third quarter like-for-like sales were up 3.7%. McDonald’s said positive comparable sales were led by Japan, with all geographic regions reflecting positive comparable sales. Total revenue was up 3% to $7,078m from $6,873m the previous year. For the year so far, revenue is up 2% to $19,876 compared with $19,532m the year before. Propel has broken new ground by launching the Propel Franchisor Showcase, which will put the spotlight on ten up-and-coming food and beverage franchisors. The Propel Franchisor Showcase, sponsored by Seeds Consulting, will be held on Tuesday, 25 November at One Moorgate Place in London and is open for bookings. The franchisors presenting are: Lucky Voice, Paris Baguette UK, Plan Burrito, Urban Baristas, SpudBros Express, Japes, Wenzel’s, Fat Phill’s, Zocalo and West Cornwall Pasty. Propel founder Paul Charity said: “This really important and fast-emerging part of the UK food and beverage landscape deserves a bigger stage. For that reason, Propel is proud to present this showcase. This is a unique chance to explore exciting franchise opportunities.” For the full speaker schedule, click here. Free places for operators and investors only are available by emailing kai.kirkman@propelinfo.com.

Arc Inspirations CEO – ‘there are green shoots of recovery’, planning new openings in Liverpool, Cardiff and Edinburgh: Martin Wolstencroft , chief executive of premium bar operator Arc Inspirations, has said he sees “green shoots of recovery” going into 2026, as the business plans new sites in Liverpool, Cardiff and Edinburgh. The Manahatta, Box and Banyan operator, which last month made its London debut by launching Box Piccadilly in Shaftesbury Avenue, will follow this by opening a Manahatta in Liverpool in 2026, with “further sites planned for Cardiff and Edinburgh”. It comes as Arc reported “stable revenues” of £48m for the year to 31 March 2025 (2024: £47.4m) and underlying profit of £5.2m, “underpinned by a strong opening programme and the continued expansion of its key growth brands”. Site Ebitda grew to £9.7m, up £400,000, while site Ebitda conversion was up from 19.6% to 20.5%, “reflecting enhanced operational efficiency across its three key brands”. The company said that on a rebased 52-week comparison – adjusting for the 2024 financial year’s 53-week calendar and two Easter trading period – total sales also grew by 2% to £48.2m. It said overall revenue and Ebitda remained stable as new sites were offset by core strategic disposals – “a result of the group’s disciplined and forward-looking approach to growth”. The results were further elevated by a record-breaking festive period, with sales exceeding £2m between 2 December 2023 and 5 January 2024 – up 10.8% year-on-year. This momentum continued during the Men’s Euro 2024 tournament, where company-wide sales rose by 16.4% to £640,000. On the seven days England played, like-for-like sales across all three brands surged by 79%. Wolstencroft said: “We are extremely proud of the passion, commitment and flair our teams bring to Arc Inspirations and its brands. These strong results are a testament to their hard work and continued focus on guest experience, brand strength and operational excellence. This has enabled us to open new sites, including a first in Scotland, and a flagship in the heart of London’s Piccadilly. The hospitality industry as a whole has been under great pressure in recent years, with rising inflation, the cost-of-living crisis and impacting factors following the Budget. Thanks to the continued confidence in our brands from partners, stakeholders, teams and customers, these results show we are extremely well-positioned to navigate these challenges. While 2026 will not be without its challenges, there are green shoots of recovery. Changes to national minimum wage and national insurance will impact our business, but we are building and growing on our results through enhanced sales forecasting, strategic labour deployment, pricing decisions and cost control. There were several moments in the calendar year, including great volumes during the Euros tournaments and record sales festive period that have contributed to our fantastic performance. We also experienced a hugely successful first year for Box Nottingham, which we opened in November 2023, with sales in the first five months of opening exceeding our forecast by £0.4m. Now, we’re looking forward to the year ahead, with new sites in prime locations, and the addition of our flagship Box site in Piccadilly Circus, London, which was a huge milestone for the company.”

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