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McDonald’s CEO Confirms Improvement in Business

06/19/2020

In a news release on June 16th, McDonald’s Corp. outlined progress in reestablishing normal business both in the U.S. and in the international market.  Chris Kempczinski, CEO appeared on CNBC expressing confidence that the company would successfully negotiate the effects of COVID-19.

 

Kempczinski stated “our strong foundation and the unique advantage of the McDonald’s system including a high percentage of drive-thru restaurants and investments in delivery and digital have enabled us to adapt to the changing landscape presented by the COVID-19 outbreak.” He added “the steps we are taking in response to the pandemic and to accelerate recovery while continuing to serve the great and familiar taste of a meal from McDonald’s will position this world for the next phase of this crisis.” 

 

There were no specific data on sales in the press release but the company claims improvements through April and May, although obviously lower than the corresponding months in 2019.  Kempczinski referred to the breakfast day-part and growth in a larger average check contributing to improvements in sales.


Chris Kempczinski

 

In the UK and France, mandatory store closings impacted sales, but sales trends continued through May with positive comparative sales in Australia but offset by negative comparisons for Germany, Canada, and Russia.  Negative comparisons were recorded in Latin America and China but were positive in Japan.

 

In the U.S., 1,000 restaurant dining rooms have re-opened with reduced capacity and only 100 restaurants remain closed due to their locations in malls.  Virtually all restaurants operate drive-thru, delivery and take away frequently with limited menus or operating hours.

 

In a June 19th announcement McDonalds reduced the range of menu items including parfaits and salads to expedite drive-through service and to simplify operations.

 

The company will release first quarter earnings on April 30th when specific financial and performance comparisons will be provided.