(Pooja Dubey, Intern Journalist) The economy is suffering badly due to the lockdown caused by coronavirus all over the world. The biggest companies are suffering huge losses globally.
McDonald’s, which is famous for fast food all over the world, is also facing heavy losses. The Chicago-based burger chain’s stock has fallen more than 2.5 percent. Store sales in major international markets including the United Kingdom, France, and Latin America declined by 23.9 percent.
Sales in the United States, where the company operates more than a third of its restaurants, fell by 8.7 percent, but the relief was better than the estimated 9.97 percent decline. The officials were informed about the losses in a cautious tone. But now July sales in the United States have improved.
Chris Kempczinski, the company’s chief executive, said, “McDonald’s is trying to learn a lot in this new environment in the second quarter and is trying to mold its sales accordingly. Sales have improved substantially since the lockdown was relaxed and we also gained experience running our business during this crisis. About 96 percent of McDonald’s locations are operating with drive-through distribution or reduced seating capacity. McDonald’s is looking to further expand its business in Europe, where there are some independent restaurant units that have some major challenges and this could present some more opportunities for us.”
The company’s revenue fell 30.5 percent to $ 3.76 billion, which was better than the $ 3.68 billion estimates. The company’s net income declined 68 percent to $ 483.8 million. At the same time, the company earned 66 cents per share, which was 8 cents below expectations. The company will now promote most of the core menu items and digital ordering as well as considering some more new plans.
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