McDonald's Withdraws 2020 Forecast; Quarterly Comparable Sales Fall 3.4%

Reuters  |

Image: McDonald's restaurant, St. Petersburg, Florida. Source: McDonald's Corp

(Reuters) - McDonald’s Corp posted a steeper-than-expected decline in quarterly comparable store sales and the company pulled its full-year forecast as coronavirus-led lockdowns forced it to shutter stores and stick to delivery or take-out.

The world’s largest burger chain also said it raised $6.5 billion in the first quarter ended March 31 and suspended share buybacks to bolster its cash reserves.

Comparable sales fell 3.4% in the quarter, missing analysts’ expectations of a 0.91% drop, according to IBES data from Refinitiv.

In March alone, global comparable sales fell 22.2% as most of its nearly 14,000 U.S. stores closed dine-in operations.

“This unprecedented situation is changing the world we live in, and we will need to adapt to a new reality in its aftermath,” Chief Executive Officer Chris Kempczinski said in a statement.

Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila.

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Source: Reuters

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