Even with 95 percent of restaurant locations back open, McDonald’s latest sales figures paint a bleak picture for the wider quick-service restaurant industry (QSR).
In its filing with the SEC on June 16, the fast-food chain noted that its comparable sales had improved sequentially between late March and May, but a closer look at the details reveals that the company’s comparable sales were still down by 29.8 percent by the end of May 2020.
While the company is doing relatively better in the U.S., closure of its restaurant locations in international markets such as France, Germany, Italy and the U.K. severely impacted the company’s overall performance.
That said, the company’s investment in digital ordering and delivery among things has seemingly proven valuable in coping up with the shifts in consumer behavior during the pandemic, according to McDonald’s President and CEO Chris Kempczinski.
“Our strong foundation and the unique advantages of the McDonald’s System, including a high percentage of drive-thru restaurants and investments in delivery and digital, have enabled us to adapt to the changing landscape presented by the COVID-19 outbreak,” Kempczinski said in a statement.
“I am confident in our ability to manage through the immediate challenges and emerge from this pandemic in a position of competitive strength.”
As the company works on stabilizing its business, it has reportedly earmarked $200 million for marketing to improve the speed of its recovery, but still there is a bumpy road ahead.
“Looking at comparable sales, we expect the second quarter as a whole to be significantly worse than what we experienced for the full month of March,” Kempczinski added.