Mcdonald's Revenue Falls 30% Despite Progress At U.s. Restaurants

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McDonald’s said its U.S. same-store sales shrank just 2.3% in June.

Fast-food chains like McDonald’s have been recovering faster than the overall restaurant industry.

McDonald’s said it expects to accelerate U.S. restaurant closures this year and permanently shutter about 200 locations.

McDonald’s on Tuesday reported that its quarterly revenue was slashed by nearly a third as coronavirus lockdown measures outside the U.S. weighed on sales for its French fries and cheeseburgers.

While the recovery in the U.S. has been comparably stronger, recent surges in Covid-19 cases have forced some states and cities to reimplement restrictions aimed at controlling the spread of the virus. As a result, McDonald’s didn’t offer any forecast for its future performance.

“In many markets around the world, most of notably in the U.S., the public health situation appears to be worsening,” CEO Chris Kempczinski told analysts. “ Nonetheless, I believe that Q2 represents the trough in our performance as McDonald’s has learned to adjust our operations to this new environment.”

Shares of the company fell nearly 2% in early trading Tuesday.

Still, McDonald’s said it expects to accelerate U.S. restaurant closures this year and permanently shutter about 200 locations. More than half of those are lower sales volume locations inside Walmart stores. The company is forecasting 350 net new locations in 2020.

By Amelia Lucas 
July 28, 2020
Source: and Complete article: CNBC.com