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Like many companies, McDonald's is looking for revenue growth in emerging markets like China and Africa, where fast-growing populations present both high risk and high potential rates of return. Skinner said McDonald's plans to open a net of 900 new restaurants in the coming year, concentrated in Asia, the Middle East and Africa, to add to the current roster of 33,500-plus locations around the world. About 22 percent of McDonald's revenue comes from Asia Pacific, Africa and the Middle East, up from 14 percent five years ago. That region grew revenue 13 percent over the year, faster than any other. In the U.S., McDonald's will focus on getting more customers into the existing 14,000-plus locations. Skinner said the approach was "not rocket science." "A lot of it is simple things like proper scheduling, positioning and then planning for your shift, planning for that time period from 11 (a.m.) to 1 (p.m.) for example to be able to facilitate faster service, and fast service begets more customers," Skinner said. Revenue in Europe, which accounts for the biggest slice of total revenue
-- 40 percent -- grew by 9 percent. New items, like hamburger bagel sandwiches, helped the company maintain revenue despite the region's "ongoing economic uncertainty." Executives said they see room for growth in the drive-thru business and breakfast sales there. The company said it continues to set aside money for renovating restaurants, which it sees as key to attracting new customers. Globally, McDonald's has renovated about 45 percent of its restaurants' interiors and 25 percent of the exteriors. But the all the remodeling has needled some franchisees who have share in the costs. Mark Kalinowski, an analyst at Janney Capital Markets, reduced his per-share earnings estimate for this year and next on the foreign currency impact and upcoming spending. McDonald's said it expected selling, general and administrative expenses to jump 6 percent in 2012, driven by investments in restaurants as well as spending on the London Olympics and a convention for owner-operators.
[Associated
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