CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

McDonald’s under pressure as same-store sales tumble amid Covid-19

The fast food company reported that same-store sales in March fell by 22% after having to close its restaurants amid the Covid-19 pandemic.

McDonald's told investors on Wednesday that global same-store sales fell 22% in March due to the coronavirus pandemic forcing the company to close its restaurants.

The fast food company also said that global same-store sales declined by 3.4% in its first quarter (Q1) - far exceeding the 0.91% drop in Q1 that analysts had expected, according to IBES data from Refinitiv.

McDonald’s secured $6.5 billion of new financing during the quarter.

McDonald’s shares are trading marginally higher in early morning trading on Wednesday at $175.78 a share as of 16:00 (GMT).

McDonald’s withdraws 2020 outlook

Due to the impact of the Covid-19 pandemic, the Big Mac maker opted to withdraw its 2020 outlook and long-term forecast that it issued in February.

In its previous guidance, the company said it expected earnings per share growth in the high-single digits and sales growth of between 3% - 5%.

McDonald’s had planned on spending around $2.4 billion in 2020, but that figure has been reduced to $1.4 billion, with the company no longer pushing ahead with restaurant renovations and global expansion efforts amid the challenging market conditions.

How to trade retail stocks

Looking to trade McDonald’s and other retail stocks? Open a live or demo account with IG and buy (long) or sell (short) the stock using derivatives like CFDs in a few easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘McDonald’s’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

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