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McDonald’s Gears Up For Reopening With $200 Million Advertising Boost

By John F. Heerdink, Jr.

McDonald’s Corporation (MCD) reported a 30% decline in its global sales in the first two months for the current quarter even though lock-down restrictions eased amid the pandemic, allowing the reopening of the majority of its restaurants worldwide. The fast-food giant reported improved demand from April to May as it started to serve diners, especially in the United States. Earlier during the lock-down fast-food restaurants had to limit operations to the drive-thru, takeaway, and delivery apps as dining-in remained closed resulting in lower sales.

The company’s current-quarter comparable sales declined due to the closure of all of its restaurants in France, the United Kingdom, Spain, and Italy in April, the company informed. However, the current-quarter comparable sales in the two months ending May 31 dropped 12% in the United States. The decline was much less in May at 5% in comparison to April figures which witnessed a 19% fall. 

To boost advertising, the company is planning to spend $200 million as a part of its recovery plan to cut through the crisis, the investment is to be recorded in the second quarter.

“The steps we are taking in response to the pandemic and to accelerate recovery will position us well for the next phase of this crisis,” stated Chief Executive Officer Chris Kempczinski.

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

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: McDonald's pins hope on reopenings as global sales fall 30% in Reuters)


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