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Revenues Fall By 30%
Shares in US restaurant chain McDonald’s Corporation are trading 2.5% lower pre-market on Wednesday. This comes following a weak set of Q2 earnings yesterday.
McDonald’s reported earnings per share of $0.66 versus estimates of $0.74. This marked its largest earnings miss in thirty years.
Revenues reportedly came in at $3.77 billion. While this was slightly higher than the $3.68 billion expected, it is down around 30% from the prior quarter. This is a reflection of the drop-in demand over the period.
The COVID-19 crisis is the main downward pressure on earnings. McDonald’s had to temporarily close all of its stores around the country at the height of the pandemic and has yet to fully re-open all of its locations.
The chain has said that, as a result, some sites will be closed permanently. In fact, the company is planning to close 200 locations for good by year-end.
Speaking alongside the release, McDonald’s CEO Chris Kempczinski said:
“In many mark...
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