McDonald’s sales plunge 30% despite US resilience

McDonald’s has revealed that sales plunged by 30% to $3.76bn (£2.89bn) during the second quarter of the year.

As a result, the global restaurant chain said that the fall in sales led to net income also falling by 68% to $483.3m (£372m).

Despite the fall, McDonald’s said global comparable sales results have “sequentially improved” throughout the second quarter of 2020 as markets reopened restaurants and governments eased restrictions.

Sales recovered quickest in the US from a decline of 19.2% in April to down to just 2.3% at the end of June.

However, in its international markets it revealed that sales results were “heavily impacted” by temporary restaurant closures and limited operations, particularly in the UK and France. Internationally sales were down 66.7% in April and recovered slightly to a decline of 40.5% at the end of June.

As of the end of June McDonald’s said 2,000 of its restaurants have reopened with reduced capacity.

McDonald’s president and CEO Chris Kempczinski said: “Throughout our history, McDonald’s has demonstrated the strategic foresight necessary to position our business for the future.

“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.

He added: “I’m especially proud of the way the McDonald’s System continues to provide a safe environment for both customers and crew, building on our 65 year legacy as a responsible and reliable choice for safe food.

“We’re confident that the strong foundation we’ve built, combined with the unique advantages of our System, position us well to continue operating successfully during this pandemic and emerge even stronger.”