McDonald’s Q2 profits tumble 68% on coronavirus hit

NEW YORK: McDonald’s reported a steep drop in second-quarter profits Tuesday on much lower sales due to coronavirus closures that affected most of the chain’s worldwide network.

The fast-food company suffered a 68% drop in profits to US$483.8 million, following a 30% decline in revenues to US$3.8 billion.

Comparable sales tumbled throughout major markets for the food giant, but the US  chain outperformed other regions because of drive-through and takeaway service that continued even where in restaurant dining service was stopped.

Sales improved throughout the quarter in the US and in some international markets as governments lifted lockdown restrictions and more activity resumed.

“Our strong drive-through presence and the investments we’ve made in delivery and digital over the past few years have served us well through these uncertain times,” said Chief Executive Chris Kempczinksi.

“We saw continued improvement in our results throughout the second quarter as markets reopened around the world.”

McDonald’s last week announced it would begin requiring customers to wear face masks in US restaurants on Aug 1 because of coronavirus and would pause its plan to reopen more US dining rooms while the country battles the outbreak.

McDonald’s said about 2,000 US restaurant dining rooms have reopened with reduced seating capacity, almost 15% of its total number of restaurants in the company’s home market.

Shares fell 2.4% to US$196.51 in pre-market trading.