McDonald’s Corporation (MCD) reported quarterly profit and revenue this week, much below market estimates as the second round of pandemic lockdowns were announced in parts of Europe, hurting the business and affecting the company’s sales growth in the U.S. market too. The burger giant informed that the restrictions were affecting markets abroad, particularly those with fewer drive-thru locations.
Comparable sales for the restaurant chain’s international operated markets segment dropped 7.4% in the fourth quarter, driven by weakness in countries like France, Germany, Italy, and Spain, where the health crisis has been more severe. Comparable sales in the United States increased 5.5%, an improvement over the prior quarter and above the estimate of a 5.15% increase, as the company relied on its drive-thru and celebrity collaboration, including the crowd-favorite Travis Scott Meal, to push business.
Overall, global comparable sales dropped 1.3% for the quarter ending Dec. 31, better than the expected 1.46% decline and an improvement over the previous quarter with global sales dropping 2.2% year over year. Total revenue declined 2.1% to $5.31 billion, missing the estimate of $5.37 billion. Excluding one-time items, the company earned $1.70 per share, missing the average analyst estimate by 8 cents.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page.
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