McDonald’s Corp <MCD.N> on Tuesday reported a bigger-than-expected drop in international same-store gross sales and missed revenue expectations, as its eating places have been shut because of the Covid-19 pandemic, limiting operations to solely drive-thru and supply.
Shares of the Chicago-based restaurant chain fell about 2% earlier than the opening bell.
International same-store gross sales fell 23.9% for the second quarter ended June 30, dragged down by massive worldwide markets together with the UK, France and Latin America.
Analysts had forecast a 23.24% fall, based on IBES knowledge from Refinitiv.
In america, the place it operates greater than a 3rd of its eating places, same-restaurant gross sales fell 8.7%, however have been higher than the anticipated 9.97% fall, as most places have been capable of keep open with drive-thru and supply choices.
As lockdowns eased, gross sales improved and losses weren’t as unhealthy, offering some optimism for a measured rebound.
Eating places have been struggling to deal with the altering dynamics and shopper behaviors across the well being disaster, forcing them to simplify menus and shift largely to on-line and cell orders for pickup, supply and drive-thru.
“Our robust drive-thru presence and the investments we’ve made in supply and digital over the previous few years have served us effectively by these unsure instances,” Chief Govt Officer Chris Kempczinski stated.
To assist drive its restoration, McDonald’s, like many different U.S. restaurant chains and retailers, stated face coverings can be obligatory at its shops in america and staff would supply one to anybody getting into and not using a masks.
The corporate stated about 96% of its eating places have been working with drive-thru, supply or decreased seating capability.
Income fell 30.5% to $3.76 billion, however beat the estimate of $3.68 billion.
Web revenue fell 68% to $483.Eight million. Excluding one-time gadgets, McDonald’s earned 66 cents per share, Eight cents beneath expectations.