FILE PHOTO: Delivery couriers practice social distancing while waiting for orders at a McDonald’s open for take away following the implementation of stricter social-distancing and self-isolation rules to limit the spread of the coronavirus disease (COVID-19) in Sydney, Australia, April 6, 2020. REUTERS/Loren Elliott
(Reuters) – McDonald’s Corp (MCD.N) posted a steeper-than-expected decline in quarterly comparable store sales and the company pulled its full-year forecast as coronavirus-led lockdowns forced it to shutter stores and stick to delivery or take-out.
The world’s largest burger chain also said it raised $6.5 billion in the first quarter ended March 31 and suspended share buybacks to bolster its cash reserves.
Comparable sales fell 3.4% in the quarter, missing analysts’ expectations of a 0.91% drop, according to IBES data from Refinitiv.
In March alone, global comparable sales fell 22.2% as most of its nearly 14,000 U.S. stores closed dine-in operations.
“This unprecedented situation is changing the world we live in, and we will need to adapt to a new reality in its aftermath,” Chief Executive Officer Chris Kempczinski said in a statement.
Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila