It’s time for all of our favorite public companies to release their second-quarter earnings reports, and this could be the most dramatic Q2 in the history of the restaurant industry. the highs! the minima! The very, very, very low ones! Friends, we are about to be bombarded with some very depressing headlines about the state of the restaurant industry. But let’s do our best to read the everything article before we collectively poke our heads in the sand, because, as always, there is a wealth of data that cannot be included in all doomsday headlines.
Take for example the headline “Dunkin ‘is closing 800 locationsThat has been popping up in all the news today. That number is accurate, though not necessarily apocalyptic; 800 locations represent 8% of Dunkin ‘outlets. It’s surprising and disturbing news, but there’s a bigger picture. – Those 800 locations represent just 2% of the company’s sales, and more than half of the closing locations are within Speedway convenience stores. and The company had announced plans to close those locations in February. So if you run Dunkin ‘, you probably won’t have to stop doing it in the near future. Save energy by worrying about the future a little further, because the rest of Dunkin Q2 Report It is, predictably, a disaster.
Similarly, the Restaurant business headline “McDonald’s is closing 200 other locations“It seems a little scary, although a little less when you consider that Mickey D’s has almost 14,000 restaurants in the United States alone, more than 38,000 internationally, and probably several thousand in the afterlife, because even mortal death cannot destroy the need of a soul for McNuggets. ” In the article itself, Restaurant business reports that more than half of the closings are low-volume kiosks located within Walmarts, as McDonald’s is seeking to move away from the location of restaurants within shopping malls or other closed commercial areas where have a drive-thru it is impossible. The coronavirus warning: shutdowns were to occur gradually in the coming years, but in this week’s earnings callMcDonald’s chief financial officer Kevin Ozan said the company will expedite all planned closings to focus on the future.
“The number of push impulses affects the rate of recovery in the market,” Ozan said. “Markets with a higher percentage of driving momentum show a faster recovery. Markets with a higher concentration of restaurants in the city center and in shopping malls are experiencing a greater impact due to the reduction in pedestrian traffic. ”
McDonald’s declined to offer any forecast for its future performance, because who the hell knows what Q3 might be like? Even though McDonald’s is doing pretty well recovering from the worst financial quarter in nearly a century, who can confidently say that the next few months will not bring locust swarms to feast on Big Macs, or that Grimace will not be cornered. kind of dark crime syndicate?
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