McDonald's marks 50th birthday

BURGER chain McDonald's celebrates its 50th birthday today. The fast-food giant's first outlet opened in Des Plaines, Illinois in April 1955 and has since expanded to more than 26,000 outlets in 119 countries, including more than 1,000 in the UK.

More than 50m people eat in a McDonald's outlet every day. When Ray Kroc opened the Des Plaines restaurant takings on the first day totalled just $366.12.

The chain's huge growth has been a classic story of business expansion. The group is now a multinational giant and its golden arches have become a global design icon, recognised everywhere.

The huge growth does, however, mask recent difficulties including a slump in profits and the closure of many less successful outlets. The chain has also been forced to introduce a wide range of lower-fat options on its menus in response to growing public disquiet over the fat content of food.

The company has also attracted unwelcome publicity for its legal battle against two environmental campaigners. The decision to sue the pair, Helen Steel and Dave Morris, came after the duo distributed a leaflet accusing McDonald's of unethical and environmentally destructive activities.

The subsequent trial, the longest in English legal history, resulted in a partial victory for the group, but some of the claims made by the leaflet were held to be justified. These included the claim that McDonald's targeted its advertising at children, who pestered their parents into visiting its restaurants.

The first McDonald's restaurant in the UK opened in Woolwich in 1974, 20 years after rival Wimpy first opened its doors. McDonald's revolutionised UK palates, used only to fish and chip takeaways.

The extent to which people now eat takeaway food is highlighted by figures that show how many meals are served in this way. In 1981, 1.5bn takeaways were bought in Britain, costing an average £3.39. Last year, some 1.9bn meals were sold at an average of £3.24. The cheap cost reflects the high level of competition for consumers' money.

McDonald's went public in 1965 and its shares are listed on the New York Stock Exchange. The extent of its recent recovery following a profits slump was underlined on Wednesday when the company said it expects to report first-quarter profits comfortably ahead of analysts' forecasts. Market observers say that the improvement reflects the introduction of higher-priced menu items and other operational improvements. Profits are expected to come in at around 56 cents per share, up 40% from a year ago.

McDonald's says that like-for-like sales on a comparable stores basis were up 6.8% in March and 4.6% in the first three months of the year. Sales in Europe were up 6.6% and 2.9% in the quarter.