McDonald’s UK has said that some British families are “running out” of cash ahead of payday, despite it posting another quarter of rising sales and enjoying its “busiest-ever” day of trading last month.
Jill McDonald, the chief executive of McDonald’s UK, partly attributed its bumper day on 29 June to the trend of customers treating themselves around payday.
She said: “We have seen a stronger trend around payday over the last nine to 12 months. People are finding that money is literally running out towards the end of the month.”
But Ms McDonald was “cautiously optimistic” about the outlook for consumer spending for the rest of this year, reflecting a raft of recent positive economic data and other “feel good” factors.
She said: “When you look at consumer confidence, although it is still low it is improving. The weather just gets people out and about on the high street more and feeling good. And hopefully more sporting successes and the safe arrival of a royal baby will help further.”
McDonald’s UK said underlying sales grew in mid-single digits over the quarter to 30 June but declined to provide the exact figure. Ms McDonald said its 29th consecutive quarter of growth had been driven by several areas, including its Great Tastes of America burger promotion, breakfasts and the introduction last month of smoothies.
She said smoothies were selling “incredibly well” and made McDonald’s, with than 1,200 UK restaurants, “a beverage destination as well as a food destination”.
The burger chain has hired more than 1,500 people so far this year, through opening more restaurants for longer and adding 14 new ones. Its 500th 24-hour restaurant started trading last week.