McDonald's same store sales drop 22 percent in March due to coronavirus

McDonald's same store sales drop 22 percent in March due to coronavirus
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McDonald’s on Wednesday reported a same-store sales decrease of 22 percent in March amid the coronavirus pandemic.

The fast-food chain’s domestic same-store sales fell 13 percent last month, the company reported in a release, after the first two months of 2020 saw a 8.1 percent same-store sales increase in the U.S.

Overall, the company said its global same-store sales dropped 3.4 percent in the first quarter and that a quarter of its locations worldwide have had to close. 

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In mid-March, McDonald’s moved its corporate-owned locations to delivery, takeout and drive-thru only and encouraged its franchises to follow suit.

Fast-food restaurants have done better than full-service ones amid the pandemic, with fast-food transactions falling 40 percent in the week ending March 29 while full-service transactions decreased 79 percent, according to the NPD Group, CNBC reported.

McDonald’s withdrew its 2020 outlook and long-term forecast originally released in February, citing the coronavirus crisis and its unknown effects on business and the economy. It had originally predicted a 3 to 5 percent boost in sales growth this year.

McDonald’s will give an update in its reports earnings on April 30.

CEO Chris Kempczinski said in a letter that he will only take half his salary until at least Sept. 30, and four other top executives at the company have volunteered to work for lower salaries during the pandemic, CNBC reported.