When McDonald’s Corp. (NYSE: MCD) released its first-quarter financial results before the markets opened on Thursday, the golden arches posted $1.47 in earnings per share (EPS) and $4.71 billion in revenue. Consensus estimates had called for $1.57 in EPS and $4.65 billion in revenue, and in the same period of last year, the fast-food giant said it had EPS of $1.72 in $4.93 billion in revenue.
Consolidated revenues decreased 6% (decreased 5% in constant currencies), reflecting the impact of the coronavirus. Consolidated operating income decreased by 19%.
During the quarter, global comparable sales decreased 3.4%. At the same time, systemwide sales decreased by 4% (2% in constant currencies).
In the United States, first-quarter comparable sales rose 0.1%. The International operating segment’s first-quarter comparable sales decreased by 6.9%, and the International Developmental Licensed segment’s first-quarter comparable sales fell 3.4%.
While approximately 75% of McDonald’s restaurants worldwide remain open, the majority are now focusing on drive-thru, delivery and takeaway.
Chris Kempczinski, McDonald’s president and CEO, commented:
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. McDonald’s has seen a lot over our 65 years and I’m confident that the actions we’re taking will enable us to emerge from this crisis in a position of competitive strength. The determination and team spirit across the McDonald’s System is evident as we continue to offer affordable, convenient food while at the same time providing for the safety of our crew and customers and continuing our legacy of supporting local communities in which we operate.
McDonald’s stock traded down more than 2% early Thursday to $183.41 a share, within a 52-week range of $124.23 to $221.93. The consensus price target is $198.46.
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