Let's talk about the Golden Arches.
McDonald's is suspending its share buyback program, scrap its 2020 profit outlook and raise $6.5 billion in the bond markets to boost its cash position as the global coronavirus pandemic hammers sales and traffic at the world's biggest restaurant chain.
The group also pulled its 2020 earnings forecast, as well as its longer-term outlook, after noting that same-store sales for the month of March fell 3.4% from the same period last year, well ahead of the 0.9% decline analysts had expected.
"While the disruption means our business is faced with immediate challenges, we believe our agility has positioned us well to adapt and continue to serve customers where it is safe to do so," the company said. "Approximately 75% of our restaurants around the world are operational, the majority of which have adapted to focus on Drive-thru, Delivery, and/or Take-away."
McDonald's posted a 22% fall in March in global same store sales. Does this prove to you that the drive-through is not immune to this virus?
Yeah, but that wasn't bad. I sold McDonald's domestic and I expected really, really bad numbers and comps were down 3.4%. There was a management teams six years ago where that would have been good numbers. So, I thought that was okay. I thought McDonald's was good. I was tempted to buy it off that. We're waiting for discounts. If McDonald's had broken down today off that number, which I was hoping it would, then I would've said, "You know what? If McDonald's yields more than three, we got to get interested." It's the same way that when Home Depot got to three I said, "Look, I got to be interested in Home Depot. Anytime it's under 200 you get to three." So, I think McDonald's is going to stop. I just wanted it to be down today.
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