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New York (pte054/09.06.2005/16:19) - The popularity of McDonald's http://www.mcdonalds.com , the world's largest restaurant chain, is waning in Europe. Sales in Germany and Britain fell last month, dropping by 1.4 per cent compared to the same time last year.
Customers have not reacted to the company's new campaign and promotion of healthier food as well as management had hoped.
The disappointing European sales figures have come at an awkward time for McDonald's, with its European head, Russ Smyth, who has been with the company for 21 years, resigning for personal reasons. Janice Meyer, and analyst from CSFB, predicts that his replacement, vice-president of McDonald's Europe, Denis Hennequin, could help to boost European sales.
McDonald's shares have been disappointing for Wall Street, falling 84 cents to US$29.57 in trade in New York. Despite having gained 30 per cent last year, the food chain's stocks have fallen 7.8 per cent in 2005. Sales at outlets in the US that had been open longer than one year rose by 4.2 per cent.
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