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McDonald's Misses Q2 Profit Forecast As Global Sales Slump; US Re-Openings Paused

McDonald's, which delayed U.S. dining re-openings by another 30 days last week, saw system wide comparable sales fall 24% over the three months ending in June.

McDonald's Corp.  (MCD) - Get McDonald's Corporation (MCD) Report posted weaker-than-expected second quarter earnings Tuesday as global sales slumped amid restaurant closures triggered by the coronavirus pandemic.

McDonald's said adjusted profits for the three months ending in June were pegged at 66 cents per share, down 68% from the same period last year and well shy of the Street consensus forecast of 74 cents per share. Group revenues, McDonald's said, fell 30.5% to $3.76 billion, just ahead of analysts' estimates of a $3.68 billion tally.

Global comparable sales fell 23.9% from last year, McDonald's said, and were down 8.7% in the United States, with breakfast service particularly affected by stay-at-home orders and business closures. 

"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," said CEO Chris Kempczinski. "We saw continued improvement in our results throughout the second quarter as markets reopened around the world." 

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"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," he added. "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."  

McDonald's shares were marked 1% lower in early trading following the earnings release to change hands at $199.29 each, a move that trims the stock's year-to-date gain to around 0.85%.

Last week, McDonald's said it would pause the re-opening of dine-in services for its U.S. restaurants by another 30 days amid the sharp resurgence of coronavirus infections in southern and western states, although nearly all of its domestic locations would remain open for drive-through customers.