The impact that the coronavirus pandemic has had and will continue to have on global fast-food giant McDonald's MCD simply cannot be estimated, but it will clearly be extraordinarily negative.
That was the message from a regulatory filing submitted by McDonald’s on Tuesday, which warned that the financial blow from the coronavirus pandemic to its earnings cannot be reasonably estimated because it doesn’t know the duration and scope of disruptions to its business.
In the regulatory filing, McDonald's said it is working with franchisees around the globe to support financial liquidity, but that the unprecedented events that have forced it to close stores - and dramatically reduced customer foot traffic - will have a “negative financial impact” on its operations.
In the U.S., “substantially all” locations are operating with only drive-thru, takeout or delivery options, the filing said. Some locations may have limited hours. In its international operated markets segment, most markets like France and Canada also have limited operations, while others including Italy and Spain have closed all restaurants.
The majority of McDonald’s restaurants in Japan are open, while 95% of its locations in China are also operating, the filing said.
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