McDonald’s sales figures show marked improvement as Covid-19 lockdowns eased
In this article (5)
Newly released McDonald’s sales figures have shown a marked global improvement for the business sequentially from late March through May despite the continuing impact of the coronavirus pandemic.
The information released ahead of the firm’s second-quarter earnings announcement, showed sales steadily improving throughout the period however they still remain negative compared to last year’s figures.
Comparable McDonald’s sales figures across international markets for both April and May were heavily impacted by temporary restaurant closures in the UK and France, and to a lesser extent Italy and Spain. The firm saw strong drive-thru performance in Australia, and negative comparable sales in Germany, Canada and Russia.
Sales in international licensed markets were primarily impacted by temporary restaurant closures across nearly all regions, most notably in Latin America. The results reflected continued negative comparable sales in China and positive comparable sales in Japan.
The vast majority of markets are operating with drive-thru and delivery with limited menus and hours.
A breakdown of figures for international licensed markets was not provided by the firm.
“Our strong foundation and the unique advantages of the McDonald’s System, including a high percentage of drive-thru restaurants and investments in delivery and digital, have enabled us to adapt to the changing landscape presented by the Covid-19 outbreak,” said McDonald’s president and CEO Chris Kempczinski.
“The steps we are taking in response to the pandemic and to accelerate recovery while continuing to serve the great and familiar taste of a meal from McDonald’s, will position us well for the next phase of this crisis.”
The report shows 95 percent of McDonald’s restaurants around the world are currently open to serve customers.
Questions & Answers
Q.Did McDonald's sales completely recover to pre-pandemic levels during this period?
Did McDonald's sales completely recover to pre-pandemic levels during this period?
No, despite improving sequentially from late March through May, the sales figures still remained negative when compared to the same period in the previous year. The recovery was an improvement, not a full return to prior year levels.
Q.Which specific international markets experienced the most significant sales impact due to restaurant closures?
Which specific international markets experienced the most significant sales impact due to restaurant closures?
The UK and France were heavily impacted by temporary restaurant closures, as were international licensed markets, particularly in Latin America. Italy and Spain also saw some impact, though to a lesser extent.
Q.What factors did McDonald's CEO attribute to the company's ability to adapt during the pandemic?
What factors did McDonald's CEO attribute to the company's ability to adapt during the pandemic?
The CEO highlighted the company's strong foundation, high percentage of drive-thru restaurants, and investments in delivery and digital services as key advantages that allowed them to adapt to the changing market caused by the Covid-19 outbreak.
Q.Were all McDonald's restaurants around the world operating during this period?
Were all McDonald's restaurants around the world operating during this period?
No, not all restaurants were open. The report states that 95 percent of McDonald's restaurants globally are currently open to serve customers. Some markets, like the UK and France, saw widespread temporary closures.
Reader pulse
Are McDonald's sales figures a sign of wider retail recovery?
22,321 votes so far