McDonald's March Comps. Down 22.2%; Withdraws 2020 Outlook

(RTTNews) - McDonald's Corp. (MCD) reported that its total comparable sales for the month of March 2020 were down 22.2 percent, while comparable sales for the two months ended February 2020 increased 7.2 percent.

The company said it delivered strong global comparable sales results for the two months ended February 2020, with all segments benefiting from Leap Day.

Globally, sales results began to markedly decline during the second half of March due to COVID-19, which caused significant restaurant closures and "shelter-in-place" guidance.

As a result, the company does not expect March full-month comparable sales to be indicative of the near term.

Total comparable sales for the first-quarter declined 3.4 percent compared to an increase of 5.4 percent in the prior year.

The company has withdrawn its 2020 outlook and its long-term outlook, due to the uncertainty related to COVID-19 and its impact on the global economic conditions and the company's business operations. The company suspended its share repurchase program in March 2020.

The company expects to reduce capital expenditures by about $1 billion for 2020 as a result of fewer Experience of the Future projects across the U.S. and a reduced number of new restaurant openings in most markets around the world.

The company's chief executive officer voluntarily offered a 50% reduction in his base salary and the other Named Executive Officers offered a 25% reduction in their base salaries for the period April 15, 2020 to September 30, 2020.