Earnings

McDonald’s Q2 Revenues Fall By Nearly One-Third

McDonald’s said on Tuesday (July 28) that its revenue fell 30 percent for the second quarter of 2020 compared to the same period in 2019, according to a press release.

However, the QSR chain is doing better than the restaurant industry as a whole, since takeout and delivery are already in its DNA.

“Our strong drive-thru presence and the investments we’ve made in delivery and digital over the past few years have served us well through these uncertain times. We saw continued improvement in our results throughout the second quarter as markets reopened around the world,” said Chris Kempczinski, McDonald’s president and CEO. “I’m especially proud of the way the McDonald’s system continues to provide a safe environment for both customers and crew.”

The company said that, by the end of the quarter, “nearly all McDonald’s restaurants around the world were open to serve customers.” Nonetheless, the chain’s comparable sales declined almost 24 percent globally. McDonald’s added that these results “sequentially improved throughout the second quarter of 2020 as markets reopened restaurants and governments eased restrictions.”

The sharp declines were due to the pandemic’s “temporary restaurant closures, limited operations and dramatic changes in consumer behavior as a result of COVID-19,” per the press release.

A big unknown remains: What will consumers do after the pandemic finally is in the rear-view mirror? Kempczinski said McDonald’s is “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.”

As reported by PYMNTS, the pandemic is ushering in the era of digital 3.0. This means that the physical world will become an integrated part of the digital-first experience. In contract with the shifts of digital 1.0 and 2.0, success will require integrating payments and loyalty into digital commerce, as well as the ability to deliver products and services locally. It’s an era of innovation, as consumers now say that many of their pandemic habits are here to stay.

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New PYMNTS Study: Subscription Commerce Conversion Index – July 2020 

Staying home 24/7 has consumers turning to subscription services for both entertainment and their day-to-day needs. While that’s a great opportunity for providers, it also presents a challenge — 27.4 million consumers are looking to cancel their subscriptions because of friction and cost concerns. In the latest Subscription Commerce Conversion Index, PYMNTS reveals the five key features that can help companies keep subscribers loyal despite today’s challenging economic times.

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