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.
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