In this file:
· McDonald’s profit plunges 68%
· McDonald's sales tumbled 30% last quarter, but it's optimistic about a turnaround
McDonald’s profit plunges 68%
Q2: U.S. same-store sales declined 8.7%; guest counts down, especially at breakfast
Nancy Luna, Nation's Restaurant News
Jul 28, 2020
McDonald's Corp. reported a 68% drop in net income for the second quarter ended June 30, the first quarter to show the full impact of the coronavirus pandemic.
CEO Chris Kempczinski pushed the same message he's been stating for weeks during the crisis: the brand's digital and delivery investments have served to help the chain during uncertain times.
“We saw continued improvement in our results throughout the second quarter as markets reopened around the world,” Kempczinski said in a statement released Tuesday before the company's conference call. “I’m especially proud of the way the McDonald’s system
continues to provide a safe environment for both customers and crew, building on our 65 year legacy as a responsible and reliable choice for safe food. We're confident that the strong foundation we’ve built, combined with the unique advantages of our system, position us well to continue operating successfully during this pandemic and emerge even stronger.”
Here are the second quarter highlights. Stay tuned to NRN.com for a more detailed report later this morning after the chain’s conference call with investors...
McDonald's sales tumbled 30% last quarter, but it's optimistic about a turnaround
By Jordan Valinsky, CNN Business
Jul 28, 2020
New York (CNN Business)McDonald's is having a rough year, as shown in another dismal quarterly earnings report -- but there are signs of recent improvement.
Total sales sank 30% in the second quarter compared to a year ago, McDonald's announced Tuesday, falling to $3.77 billion. Net income plummeted 68% to $483.8 million. The figures reflect the April to June period, the first full quarter of coronavirus effects in the United States.
"In many markets around the world, most of notably in the US, the public health situation appears to be worsening," McDonald's CEO Chris Kempczinski said in its earnings call. "Nonetheless, I believe that Q2 represents the trough in our performance as McDonald's has learned to adjust our operations to this new environment."
Beneath the dismal numbers, some numbers indicated improvement as the quarter went on.
For example, US same-store sales were down 19.2% in April compared to last year. But that loss narrowed rapidly, to down 5.1% in May and just a 2.3% decrease in June. Sales in July "trended up", according to Chief Financial Officer Kevin Ozan, and he expects it them to be "slightly positive" for the month.
But same-store sales outside the US fell even more and their recovery has been slower, dragging down total global same-store sales. That global figure was down 39% in April compared to last year, almost 21% in May and more than 12% in June.
Breakfast, which was previously a troublesome part of the day for McDonald's prior to Covid-19, continues to be a drag on its sales. In addition to rising competition, such as from Wendy's, the meal also "continues to be disproportionately impacted by disruptions to commuting routines," Kempczinski said. A marketing push for breakfast will roll out later this year.
McDonald's (MCD) said its drive-thru, delivery and digital options are helping to bolster its business. Kempczinski said the company has seen...
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