McDonald’s, the world’s leading fast-food chain, released an update on March results and reported sales were down 22.2% worldwide and 13.4% in the U.S. Sales went down mainly in the final two weeks of the month as coronavirus shutdowns spread worldwide.
Nearly all U.S. McDonald’s restaurants have closed their dining rooms and are only offering delivery, take out and drive-thru. Some locations such as in malls have been closed entirely.
In countries like Australia, Canada, Germany and Russia, restaurants have limited operations including drive-thru and delivery.
In certain countries such as France, Italy, Spain and the United Kingdom, all restaurants have been closed.
China has resumed operations at 98% of McDonald’s restaurants. Japan has almost all restaurants open. Brazil has 60% of restaurants operating.
McDonald’s says it is working with franchisees around the world to support financial liquidity during this period of uncertainty. The company has granted the deferral of cash collection for certain rent and royalties earned from franchisees in substantially all markets.
Additionally, the company is working with suppliers and lenders to extend franchisee payment terms when possible.
McDonald’s will reduce expenses by $1 billion in 2020 by reducing new restaurant openings and modernization projects.
McDonald’s CEO and President Chris Kempczinski says he will cut his salary by half and four other executive offers by one quarter until September 30.
