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Mar 31, 2020

McDonald's Q1 2020 Earnings Report

McDonald's performance was negatively impacted by COVID-19, resulting in declines in global comparable sales and consolidated revenues.

Key Takeaways

McDonald's Q1 2020 results were significantly affected by the COVID-19 pandemic, which led to restaurant closures, limited operations, and changes in consumer behavior. Global comparable sales and consolidated revenues decreased, and the company withdrew its 2020 Outlook due to the uncertainty related to the pandemic's impact.

Global comparable sales decreased by 3.4%.

Consolidated revenues decreased by 6% (5% in constant currencies).

Diluted earnings per share decreased by 15% to $1.47 (13% in constant currencies).

McDonald’s suspended its share repurchase program and increased its cash position with $6.5 billion in new debt financing.

Total Revenue
$4.71B
Previous year: $4.96B
-4.9%
EPS
$1.47
Previous year: $1.78
-17.4%
Global Comp Sales Growth
-3.4%
Previous year: 5.4%
-163.0%
Gross Profit
$2.34B
Previous year: $2.54B
-7.7%
Cash and Equivalents
$5.38B
Previous year: $2.29B
+135.0%
Free Cash Flow
$1.06B
Previous year: $1.51B
-29.3%
Total Assets
$50.6B
Previous year: $46.5B
+8.8%

McDonald's

McDonald's

McDonald's Revenue by Segment

Forward Guidance

McDonald's withdrew its 2020 Outlook and its Long-Term Outlook due to the uncertainty related to the impact of COVID-19 on global economic conditions and the Company’s business operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income