Now McDonald's sets its sights on sarnies

McDonald's, already famous for its burgers and fries, is now eyeing up the fresh sandwich market.

The chain, which introduced healthier options including salads this year, is trialling sandwiches in the USA, Canada and Australia. The varieties include a New York-style pastrami, a beef and cheese and a grilled vegetable on rye bread.

The plan is to serve them in McCafés - smart lounges in existing restaurants serving coffee and muffins - which number 30 in the UK.

Despite reports that the sandwiches will be launched in Europe next year, priced at £2.50 in Britain, the UK arm of McDonald's said this had not been confirmed.

Meanwhile, the financial accounts for McDonald's Restaurants showed that it suffered its biggest fall in profits last year since opening its first British restaurant in 1974. Pre-tax profits fell from £83.8m in 2002 to £23.6m in 2003, and sales declined from £1.13b to £1.09b.

However, a statement from the company said that operating profit for its umbrella company McDonald's Property Company showed its pre-tax profit was in line with other years at £118m.