McDonald’s sales down 22 percent as coronavirus ends in-store dining
The Covid-19 pandemic is taking a bite out of McDonald’s bottom line.
Comparable sales at the fast-food giant tumbled 22 percent last month as the coronavirus forced it to close dining rooms worldwide, the company said Wednesday. McDonald’s US stores were down 13.4 percent in March compared with an 8.1 percent increase for the first two months of 2020.
But unlike many struggling restaurants across the country that have temporarily closed during the pandemic, 99 percent of McDonald’s eateries are open for business here doing some sort of drive-through, delivery or take-out business, the company said in an update. McDonald’s will report first quarter results on April 30.
“Beginning in mid-March, we experienced a significant decline in our results that varies across markets,” the company’s chief executive, Chris Kempczinski, said in a statement. “The situation remains fluid,” he added “and it is not possible to estimate the full extent of the impact on our business at this time.”
Last month, the company temporarily eliminated all-day breakfast from its menu to simply the number of items employees prepare.
In the meantime, Kempczinski is taking a 50 percent cut in his salary while four other top executives are shaving off 25 percent of their base salaries from April 15 to September 30, the company said.
“These are unprecedented times, and simply put, I felt this was the right thing to do,” Kempczinski said in a statement about his salary cut.
Source : Lisa Fickenscher Link