McDonald's Can't Predict Scope of Coronavirus Outbreak on Its Operations

McDonald's says it's impossible to predict the scope of the financial impact of the coronavirus on its operations but it could be 'material.'
Author:
Publish date:

McDonald's  (MCD) - Get Report, in a filing with the Securities and Exchange Commission, said it was impossible to predict the scope of the financial impact of the coronavirus on its operations but it could be "material."

The company said it would provide an update when it releases earnings on April 28.

The fast-food giant said most of its markets have limited operations that include drive-thru, delivery and carry out, though some restaurants have been closed and hours have been limited in others. 

In France, Italy, Spain and the U.K. all of the company's restaurants have been closed in an effort to slow down the spread of the coronavirus. 

Italy and Spain have been especially impacted by the disease. Italy has reported 6,820 deaths from the virus, followed by Spain with 3,400 deaths reported. 

In Asia, McDonald's said that basically all restaurants are operating in Japan while in China about 95% of restaurants remain open. 

"The global pandemic resulting from the outbreak of the coronavirus (Covid-19) has disrupted McDonald’s global restaurant operations. Our primary focus and attention remains directed towards the well being and safety of restaurant crew, franchisees, suppliers and employees," the company said in Wednesday's filing.

"We continue to work with franchisees around the world in order to evaluate operational feasibility and support financial liquidity (e.g. rent deferrals) during this period of uncertainty."