Payroll Tax Not Impacting McDonald's: CEO Thompson

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July 24 (Bloomberg) -- Bloomberg "In The Loop" anchor Betty Liu recaps her interview with McDonald's president CEO Don Thompson, where he offered his take on the impact of the payroll tax increase and his company's expansion in China. She speaks on Bloomberg Television's "Market Makers."

What did he tell you about why mcdonald's is struggling in the u.s. with sales?

He is saying that mcdonald's is struggling partly because the economy is on a little bit of gentle footing.

Let's it that way.

The jobs have come back, housing has come back, but people are not spending as much money as they once were eating out great in the second quarter, mcdonald's reported that there can't sales in the u.s. were up about one percent, but that was below what wall street analysts forecast.

Mcdonald's has gone to more product innovation.

He talks about the new blueberry pomegranate smoothie and talked about the mcwrap, which i had a chance to make peer -- to make here.

They talked about mcdonald's after midnight.

There have been various dings, but what analysts have said in particular is the economy has to grow in order for sales to grow.

I did ask him about the issues in washington.

One of those issues is the payroll income tax and how much that was going to hit consumers.

We never did a warning.

We basically said we did not know how it was going to play out.

What we see is the informal eating out at a quarry is contracting.

It still to be determined how much they will be hit but it is something he is focused on, and and trying to grow the sales in the u.s.. what i love is how big and giant a footprint it has around the world trade you talk about growth -- did he talk about growth overseas?

Two thirds of the sales and revenue come from overseas.

They had a huge mobile footprint.

One of the markets they are trying to move further ahead in is china.

Local comp sales in china fell six percent.

Here is what he said about the growing competition in that market.

China is going to be a positive market for us great we are not gauging our success in china based on someone else.

We had to base our decision based on how many customers go to mcdonald's. europe is still a market that is struggling for them in places like spain, france thomas so they are continuing to expand cautiously.

Mcdonald's wraps and

This text has been automatically generated. It may not be 100% accurate.


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