“In many markets around the world, primarily the United States, the public health situation appears to be worsening,” McDonald’s CEO Chris Kempczinski said in his earnings call. “However, I believe the second quarter represents the lowest point in our performance as McDonald’s learned to adjust our operations to this new environment.”
Beneath the sad numbers, some numbers indicated improvement as the quarter progressed.
For example, sales in the same stores in the United States fell 19.2% in April compared to last year. But that loss narrowed rapidly, down 5.1% in May and only a 2.3% decrease in June. Sales in July “increased,” according to CFO Kevin Ozan, and he expects them to be “slightly positive” for the month.
But sales at the same store outside the US fell further, and their recovery has been slower, dragging overall global sales at the same store. That global figure was down 39% in April compared to last year, nearly 21% in May and more than 12% in June.
Kempczinski also said McDonald’s internal customer surveys for the coming year are bleak.
“I certainly am not qualified to make predictions as to whether we are going to be in a recession or not, but I would certainly say that there are many warning signs that suggest consumer sentiment and consumer concerns about the economy is negative and going in the direction wrong, “he said.
Shares fell 2% in early trading.
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