McDonald's reported a bigger-than-expected drop in global restaurant sales as the burger chain's locations shut
- 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.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.In the United States, where the company operates more than a third of its restaurants, same-restaurant sales fell 8.
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. The company plans an advertising push in the second half of the year, having “amassed a sizeable marketing war chest,” Kempczinski said.
The company also expects to collect during the second half of the year the majority of rent it had deferred from franchisees.
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