McDonald's boosted by drive-thru and digital orders amid coronavirus rebound
US comparable sales rose 4.6%
Former McDonald's USA CEO Ed Rensi says it’s ‘tragic’ that New York City small business owners have had to deal with the coronavirus and inconsistent lockdown restrictions from leaders.
McDonald’s Corp. rode a surge in drive-thru traffic and digital orders amid the COVID-19 pandemic to stronger-than-expected third-quarter results.
The Chicago-based fast-food chain reported sales at U.S. stores open at least 12 months climbed 4.6% from a year ago, helping power a $1.76 billion profit. Adjusted earnings were $2.22 per share, outpacing the $1.90 that analysts surveyed by Refinitiv were expecting.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MCD | MCDONALD'S CORP. | 308.54 | +0.83 | +0.27% |
“The resilience of the McDonald's system was on display during the third quarter as the competitive strength of our business and the 3 D's – Digital, Delivery and Drive Thru – led to significant global comparable sales recovery," CFO Kevin Ozan said in a statement.
Global comparable sales improved sequentially, but declined 2.2% during the three months through September. Operations at some overseas restaurants remained limited due to government restrictions put in place to slow the spread of COVID-19. France, Germany and the United Kingdom recently announced new lockdowns.
Total revenue fell 2% year-over-year to $5.42 billion, eclipsing the $5.4 billion that analysts were expecting. Sales plunged 31% during the previous quarter as restaurant closures around the world snarled business.
The company raised its quarterly dividend by 4 cents to $1.29 per share.
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McDonald's shares were up 9.59% this year through Friday, outperforming the S&P 500's 8.63% gain.