McDonald’s saw worldwide net profit plummet by over US$1 billion, or 68 per cent, during the second half of FY20 as a result of lockdown restrictions limiting its sales.
However, locally the quick-service chain performed well, with comparable sales in Australia growing during the quarter due to strong drive-thru performance.
Globally, net income landed at $483.8 million, down from $1.51 billion during the same period of FY19, and comparable sales fell 23.9 per cent – though improved throughout the quarter.
McDonald’s chief executive Chris Kempczinski said he is proud of how the restaurant chain has managed to remain a safe environment for both customers and workers through the pandemic, and that he expects the business will bounce back.
“Throughout our history, McDonald’s has demonstrated the strategic foresight necessary to position our business for the future,” Kempczinski said.
“We’re confident that the strong foundation we’ve built, combined with the unique advantages of our system, position us well to continue operating successfully during this pandemic and emerge even stronger.”
Due to the unpredictable trading environment, the chain indicated it would reposition itself in the US to focus on affordability in an effort to reach a cash-strapped population, according to news.com.au.
Kempczinksi warned analysts on a conference call that there are warning signs that consumer sentiment is going backward.
“In many markets around the world, most notably the US, the public health situation appears to be worsening,” Kempczinksi said.