MCDONALD’S GLOBAL SALES SINK 23.9% IN 2ND QUARTER
McDonald’s Corp. on Tuesday reported a broad drop in global same-store sales and missed profit expectations, as its restaurants were shut due to the COVID-19 pandemic, limiting operations to only drive-thru and delivery, Nivedita Balu and Hilary Russ reported for Reuters on July 29, 2020. Shares of the Chicago-based burger chain sank more than 2.5%.
Global same-store sales fell 23.9% in the second quarter, dragged down by big international markets including the United Kingdom, France and Latin America. Analysts had forecast a 23.24% fall, according to IBES data from Refinitiv.
In the United States, where the company operates more than a third of its restaurants, same-restaurant sales fell 8.7% but were better than the anticipated 9.97% fall, as most locations were able to stay open with drive-thru and delivery options.
On a conference call with investors, executives struck a cautious tone but noted that US July sales have improved and should end “slightly positive” for the full month. The second quarter “represents the trough in our performance as McDonald’s has learned to adjust our operations to this new environment,” Chief Executive Officer Chris Kempczinski said. Restaurants struggled to cope with the changing dynamics and consumer behaviors around the health crisis, forcing them to simplify menus and shift largely to online and mobile orders for pickup, delivery and drive-thru.