McDonald’s under pressure as same-store sales tumble amid Covid-19
The fast food company reported that same-store sales in March fell by 22% after having to close its restaurants amid the Covid-19 pandemic.
McDonald's told investors on Wednesday that global same-store sales fell 22% in March due to the coronavirus pandemic forcing the company to close its restaurants.
The fast food company also said that global same-store sales declined by 3.4% in its first quarter (Q1) - far exceeding the 0.91% drop in Q1 that analysts had expected, according to IBES data from Refinitiv.
McDonald’s secured $6.5 billion of new financing during the quarter.
McDonald’s shares are trading marginally higher in early morning trading on Wednesday at $175.78 a share as of 16:00 (GMT).
McDonald’s withdraws 2020 outlook
Due to the impact of the Covid-19 pandemic, the Big Mac maker opted to withdraw its 2020 outlook and long-term forecast that it issued in February.
In its previous guidance, the company said it expected earnings per share growth in the high-single digits and sales growth of between 3% - 5%.
McDonald’s had planned on spending around $2.4 billion in 2020, but that figure has been reduced to $1.4 billion, with the company no longer pushing ahead with restaurant renovations and global expansion efforts amid the challenging market conditions.
How to trade retail stocks
Looking to trade McDonald’s and other retail stocks? Open a live or demo account with IG and buy (long) or sell (short) the stock using derivatives like CFDs in a few easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘McDonald’s’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 30 January 2025.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
