McDonald’s Corporation (NYSE:MCD) reported a sharp decline in sales during the second half of March, as the measures taken to combat the Covid-19 outbreak resulted in store closures and dramatic changes to consumer behaviour.
The fast food giant reported first quarter earnings of $1.47, a drop of 15%, while consolidated revenues fell 6%.
At 7:23 AM ET (1123 GMT), shares traded 0.2% lower premarket.
"Following our strong performance in 2019, McDonald's began 2020 with exceptional global momentum, and our January and February sales were reflective of that trend. Since then, the global crisis caused by the COVID-19 pandemic has significantly disrupted our business, and we continue to operate in a very challenging and unpredictable environment," said McDonald's President and Chief Executive Officer Chris Kempczinski.
McDonald's had earlier in April withdrawn its 2020 outlook, as well as its long-term outlook, due to the uncertainty related to the impact of Covid-19 on global economic conditions as well as the company's business operations.
Additionally, the company decided to suspend its share repurchase program, increase its cash position with $6.5 billion of new debt financing and reduce planned capital expenditures by approximately $1 billion for 2020.
It added that approximately 75% of its restaurants worldwide remain open to serve customers, the majority of which have adapted to focus on drive-thru, delivery, and/or take-away.
