McDonald’s is Affected by Corona Measures Outside the US
Fast-food chain McDonald’s has sold more domestically. Comparable sales, which only look at stores that were also open a year earlier, rose 5.5 percent in the United States in the fourth quarter.
Internationally, however, the company had the necessary headwind. Due to corona measures, restaurants in various countries had to be closed entirely or partially again.
Despite some bright spots, such as picking up sales in the UK and Australia, the corona measures weighed on McDonald’s results. Globally, comparable sales declined by 1.3 percent in the closing quarter of 2020. Turnover fell more than 2 percent to $ 5.3 billion, and the bottom line was $ 1.4 billion. That was more than 12 percent less than in the fourth quarter of 2019.
The measures continue to cause problems in some countries. According to McDonald’s, this is “in most major markets outside the US”. This mainly concerns countries where there are few drive-thru restaurants. In the US, McDonald’s was able to continue to sell its burgers, fries and milkshakes, among other things because ‘contactless’ sales remain possible through the drive-thrus.
Besides, McDonald’s is investing in technology and delivering its fast food in more and more countries. The company has also tried to attract customers through offers in its app. This year, McDonald’s plans to introduce its own loyalty program, but details are still lacking.