Analysts fear cutbacks McDonald’s is making may not be enough to turn the company around.

The fast-food giant is cutting back new openings from 2,000 outlets a year to 600. It also wants to cut overall capital expenditure by $100m to $1.9bn.

The company wants to use money saved to expand non-burger businesses such as Pret A Manger and spend $300m refurbishing existing restaurants.

Wendy’s, in the US, has been grabbing market share from McDonald’s. The Independent on Sunday says Wendy’s grew like-for-like earnings by 16% in the last quarter, proving McDonald’s problems were not just an affect of the wider downturn.

The Business says that Burger King is set for a revival under its new owners.

The Business 27/10/02 page 37

The Independent on Sunday 27/10/02 page 4 (Business)