Daily Management Review

McDonald's loses quarter of sales in March


American McDonald's Corp., the world's largest chain of fast-food restaurants, reported a drop in comparable global sales in March by almost a quarter amid an outbreak of the coronavirus.

Eric Chan
Eric Chan
According to the company’s press release, last month global comparable sales fell 22.2%. According to the results of the first quarter, the indicator decreased by 3.4%.

In the US, comparable sales in March fell 13.4%. At the same time, in January-March, the indicator increased by 0.1%, due to an increase of 8.1% in the first two months of the year.

McDonald's noted that almost all of the chain's restaurants in the United States (99%) continue to operate. However, they mainly carry out only orders and delivery. In the world, 75% of the restaurants in the chain remain open. In China, 98% of the points resumed work.

McDonald's also said that the company's chief executive Chris Kempczinski suggested cutting his base salary by 50%, some other top managers also agreed to reduce the base salary by 25% from April 15 to September 30.

In addition, the company withdrew its forecast for 2020. McDonald's intends to publish statements for the first quarter on April 30.

In March, the company decided to suspend the stock repurchase program.

source: bloomberg.com