Bethel Finance: McDonald's Israel sales up 6% to NIS 552m in 2011

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Bethel Finance news:
McDonald's Israel Ltd. today reported that it sales rose 6% in 2011 to NIS 552 million (excluding VAT). This means that Israeli consumers spent NIS 640 million at the fast food chain last year.

McDonald's Israel said that half the sales growth came from new branches and half from existing branches. The company has 161 branches, including eight opened during 2011, and one opened in January 2012 at the Big Commercial Center in Kiryat Shmona. Some of the new branches, including at Hadera and the Rananim Mall in Ra'anana were opened close to branches of rival Burgeranch. In 2010, McDonald's Israel opened branches close to Burgeranch branches at Jerusalem's Malha Mall and in Afula.

In December 2011, McDonald's Israel closed its two branches at Ben Gurion Airport, after losing its concession to Burgeranch in a tender. On the other hand, in past two months, McDonald's Israel will replace the Burgeranch concession in Petah Tikva's Ir Ganim neighborhood.

McDonald's Israel has 4,000 employees. It plans to renovate twenty branches and open eight new branches this year.

In the past couple of years, the company has taken measures to counter its problematic health image. It reduced the fat content in its hamburgers from 17.5% to 9%, and it launched a campaign to help the brand establish a better health image. Over the past year, it has been reducing the sodium content in its food.

The company says that these measures have helped boost sales and improve the image of its brand. In preparation for the launch of its premium products line, the change replaced all its grills at an investment of $2 million.