McDonald's, the US fast-food giant, yesterday reported strong growth in the second quarter, but warned that sharp rises in the costs of ingredients such as beef, chicken and cheese would force it to review its pricing strategies. The group said it expects beef prices to spike by 9% this year, while the price of cheese, which had been predicted to rise by 14%, could go up by as much as 21%. Ralph Alvarez, chief operating officer, said: “We've got to make sure we're pricing smart, not just pricing low”, and indicated the group would look at making changes to its 'Dollar Menu' by next year. The firm said it had seen the strongest growth in non-US markets, with global same-store sales rising 6.15%, compared with a 3.4% increase in the US. Revenues topped market expectations at $6.08bn (£3.04bn) – a 4% rise. Second-quarter earnings in continuing operations were $1.19bn, compared with a the year-earlier loss of $711m. The company also reported 3.8% growth in same-store sales in June. “We're operating from a position of strength, with double-digit operating income growth in Europe and Asia/Pacific, Middle East and Africa, and solid results in the US,” said chief executive Jim Skinner.