McDonald’s CEO Chris Kempkinski said of his earnings, “In many markets around the world, especially in the US, the public health situation is deteriorating.” “Nevertheless, I believe that Q2 represents the trough in our performance as McDonald’s has learned to adjust our actions to this environment.”
Below the dismal numbers, some numbers showed signs of improvement as the quarter went on.
For example, US same-store sales in April were down 19.2% from the previous year. But the loss came down to 5.1% in May and to just 2.3% in June. The sales “trend up” in July, according to Chief Financial Officer Kevin Ozan, and he expects it to be “slightly positive” for the month.
But same-store sales outside the US fell even more and their recovery has slowed, dragging down overall global same-store sales. The global figure was 39% lower in April than the previous year, about 21% in May, and over 12% in June.
Kempczinski also said McDonald’s customers are depressed year-round about internal surveys.
“I am certainly not qualified to make any guesses about whether we are in a recession or not, but I would certainly say that there are a lot of warning signs that would suggest that consumer sentiment and consumer concerns The economy is negative and going in the wrong direction, ”he said.
Shares fell 2% in early trade.