CHICAGO, April 30, 2020 /PRNewswire/ — McDonald’s Corporation today announced results for the first quarter ended March 31, 2020.
“Following our strong performance in 2019, McDonald’s began 2020 with exceptional global momentum, and our January and February sales were reflective of that trend. Since then, the global crisis caused by the COVID-19 pandemic has significantly disrupted our business, and we continue to operate in a very challenging and unpredictable environment,” said McDonald’s President and Chief Executive Officer Chris Kempczinski. “McDonald’s has seen a lot over our 65 years and I’m confident that the actions we’re taking will enable us to emerge from this crisis in a position of competitive strength. The determination and team spirit across the McDonald’s System is evident as we continue to offer affordable, convenient food while at the same time providing for the safety of our crew and customers and continuing our legacy of supporting local communities in which we operate.”
The Company delivered strong global comparable sales and results for the two months ended February 2020. The outbreak of COVID-19 and the resulting operational impact brought on by several related factors, including restaurant closures, limited operations and dramatic changes in consumer behavior, led to a marked decline in sales during the second half of March and significantly affected the Company’s first quarter results. On April 8, 2020, McDonald’s withdrew its 2020 Outlook and its Long-Term Outlook due to the uncertainty related to the impact of COVID-19 on global economic conditions and the Company’s business operations.
First quarter financial performance and operational update:
Global comparable sales declined 3.4%.
Consolidated revenues decreased 6% (5% in constant currencies).
Systemwide sales decreased 4% (2% in constant currencies).
Diluted earnings per share of $1.47 decreased 15% (13% in constant currencies).
Steps to preserve financial flexibility include suspending McDonald’s share repurchase program, increasing the Company’s cash position with $6.5 billion of new debt financing and reducing planned capital expenditures by approximately $1 billion for 2020.
Approximately 75% of McDonald’s restaurants worldwide remain open to serve customers, the majority of which have adapted to focus on Drive-thru, Delivery, and/or Take-away.
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