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McDonald's Comps Decline, Revokes 2020 View on Coronavirus Woes
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McDonald's Corporation (MCD - Free Report) recently provided an update on the impact of the coronavirus (COVID-19) pandemic on its business, ahead of its first-quarter 2020 results, which is expected to release on Apr 30, 2020.
Sales Decline due to Coronavirus
For the two months ended on Feb 29, comparable sales in the U.S. and International Operated Markets were up 8.1% and 8.5%, respectively. However, the metric declined 13.4% and 34.7% at U.S and International Operated Markets, respectively. Total comparable sales declined 22.2% in March.
In first-quarter 2020, U.S. comparable sales inched up 0.1%. However, comps in International Operated Markets and International Developmental Licensed Markets & Corporate fell 6.9% and 4.3%, respectively. The company’s total comparable sales declined 3.4% in first-quarter 2020.
The company stated that only 75% of its restaurants are in operations worldwide. Owing to the uncertainty of the situation, it has also withdrawn its 2020 guidance and long-term outlook, which was earlier issued on Feb 26.
Other Updates
Supposedly, the Illinois-based company suspended its stock buyback program to preserve cash and maintain ample liquidity amid a possible recession due to the coronavirus outbreak.
Moreover, to mitigate the financial impact of the COVID-19 pandemic, the company initiated certain actions to reduce its operating expenses. Notably, the CEO and the board of directors have agreed to a pay cut effective from Apr 15 to Sep 30. However, it is subject to extension depending on the situation.
So far, shares of the company have declined 10.1% compared with the industry’s fall of 17.9%. McDonald's currently carries a Zacks Rank #4 (Sell).
BJ's Restaurants, Denny's and Potbelly have an impressive long-term earnings growth rate of 15%, 9% and 17.5%, respectively.
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McDonald's Comps Decline, Revokes 2020 View on Coronavirus Woes
McDonald's Corporation (MCD - Free Report) recently provided an update on the impact of the coronavirus (COVID-19) pandemic on its business, ahead of its first-quarter 2020 results, which is expected to release on Apr 30, 2020.
Sales Decline due to Coronavirus
For the two months ended on Feb 29, comparable sales in the U.S. and International Operated Markets were up 8.1% and 8.5%, respectively. However, the metric declined 13.4% and 34.7% at U.S and International Operated Markets, respectively. Total comparable sales declined 22.2% in March.
In first-quarter 2020, U.S. comparable sales inched up 0.1%. However, comps in International Operated Markets and International Developmental Licensed Markets & Corporate fell 6.9% and 4.3%, respectively. The company’s total comparable sales declined 3.4% in first-quarter 2020.
The company stated that only 75% of its restaurants are in operations worldwide. Owing to the uncertainty of the situation, it has also withdrawn its 2020 guidance and long-term outlook, which was earlier issued on Feb 26.
Other Updates
Supposedly, the Illinois-based company suspended its stock buyback program to preserve cash and maintain ample liquidity amid a possible recession due to the coronavirus outbreak.
Moreover, to mitigate the financial impact of the COVID-19 pandemic, the company initiated certain actions to reduce its operating expenses. Notably, the CEO and the board of directors have agreed to a pay cut effective from Apr 15 to Sep 30. However, it is subject to extension depending on the situation.
So far, shares of the company have declined 10.1% compared with the industry’s fall of 17.9%. McDonald's currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks worth considering in the same space are BJ's Restaurants, Inc. (BJRI - Free Report) , Denny's Corporation (DENN - Free Report) and Potbelly Corporation (PBPB - Free Report) . All these stocks carry a Zacks rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ's Restaurants, Denny's and Potbelly have an impressive long-term earnings growth rate of 15%, 9% and 17.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>