McDonald's In Iceland To Be Shut Down Due To Costs Doubling In Past Year (MCD)

Mon. October 26, 2009; Posted: 12:26 PM

Oct 26, 2009 (SmarTrend(R) News Watch via COMTEX) -- MCD | Quote | Chart | News | PowerRating -- 10/26/2009 - McDonald's (NYSE:MCD) restaurants will be closed in Iceland at the end of the month after the collapse of the krona eroded profits at the fast-food chain, according to a Bloomberg report. The company's franchise holder Lyst ehf said that the restaurants, which import most of the ingredients used in its meals, will be closed due to the fact that costs have doubled in the past year. Lyst chief executive officer Magnus Ogmundsson said in a phone interview, "We would have to raise our prices by 20% to get the margin needed on our products. That would have sent a Big Mac to 780 kronur." That would bring the Big Mac's price to $6.36. He added, "Our competitors all use domestic meat and lettuce and so on, while we are flying in these materials, which is extremely expensive."

Write to Chip Brian at cbrian@tradethetrend.com

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For full details on Mcdonalds Corp (MCD) click here. Mcdonalds Corp (MCD) has Short Term PowerRatings of 5. Details on Mcdonalds Corp (MCD) Short Term PowerRatings is available at This Link.

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