McDonald's quarterly profit plunged 17% amid temporary store closures in Europe, limited operations and changes in consumer habits triggered by the global pandemic.
Fred Katayama reports.
Restaurant closures hurt McDonald's sales
BROADCAST AND DIGITAL RESTRICTIONS~** Broadcasters: NO USE NEW ZEALAND Digital: NO USE NEW ZEALAND INTERNET SITES / ANY INTERNET SITE OF ANY NEW ZEALAND OR AUSTRALIA BASED MEDIA ORGANISATIONS OR MOBILE PLATFORMS. Unlike many restaurants, nearly all McDonald's outlets are open for business in the U.S. amid the pandemic.
But closures in Europe bit into the burger chain's bottom line.
Quarterly profit fell more than analysts expected, declining 17%.
Revenue also dropped as the world's largest fast-food chain limited its services to delivery, drive-thru and take-away to help limit the spread of the outbreak.
After a strong start in January and February, sales slid in the second half of March.
Temporary closures of outlets in France, Italy, U.K., and China hurt results, driving global comparable sales down 22% in March and 3.4% for the quarter.
Nearly all of its restaurants in China have resumed operations.
But McDonald's says demand remains weak because consumers there haven't returned to their old dining habits.
McDonald's shares retreated in early trading Thursday.