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
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
