McDonald’s (NYSE:MCD) on Tuesday reported its quarterly revenue was slashed by nearly a third as coronavirus lockdown measures outside the U.S. weighed on sales for its French fries and cheeseburgers.
While recovery in the U.S. has been comparably stronger, recent surges in COVID-19 cases have forced some states and cities to re-implement restrictions aimed at controlling the spread of the virus. As a result, McDonald’s didn’t offer up any forecast for its future performance.
Said CEO Chris Kempczinski, "Our strong drive-thru presence and the investments we’ve made in delivery and digital over the past few years have served us well through these uncertain times.
"We saw continued improvement in our results throughout the second quarter as markets reopened around the world."
Still, McDonald’s said that it expects to accelerate U.S. restaurant closures this year and permanently shutter about 200 locations. More than half of those are lower sales volume locations inside Walmart (NYSE:WMT) stores.
The company is forecasting 350 net new locations in 2020.
The fast-food chain reported second-quarter net income of $483.8 million, or 65 cents per share, down from $1.52 billion, or $1.97 per share, a year earlier. Expenses related to the coronavirus, including $200 million on marketing support in the U.S. and international operated markets, hurt profits.
Revenue registered at $3.77 billion, beating the expected $3.68 billion.
Shares of the company fell $4.47, or 2.2% in early Tuesday trading, to $196.78.
