McDonald's: quarterly profit falls short of expectations
(CercleFinance.com) - McDonald's shares slid 2% in pre-market trading on Tuesday as the world's biggest burger chain's quarterly earnings fell short of expectations.
The Chicago-based company's second-quarter profit fell 68% to 484 million dollars, with EPS falling to 65 cents from 1.97 dollar a year ago.
By comparison, analysts were expecting EPS of 74 cents.
Consolidated revenues fell by 30% to 3.7 billion dollars, as global comparable sales dropped 23.9%, heavily impacted by temporary restaurant closures, particularly in the UK and France.
The company also pointed out "dramatic changes" in consumer behaviour as a result of the coronavirus pandemic.
In its statement, McDonald's said comparable sales sequentially improved throughout the quarter as markets reopened restaurants and governments eased restrictions. As of 30 June, 96% of its restaurants around the world had reopened.
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