McDonald's top execs offer pay cut as March sales drop 22%

Its operations are significantly affected through limited hours, purchase venue points and even closures in some markets.
  • Nusra Deputy Features Editor
McDonald's

QSR chain McDonald's CEO Chris Kempczinski has offered to take a 50% pay cut and the company withdrew its 2020 earnings outlook after March sales fell 22% amid the COVID-19 pandemic, in a filing with federal regulators.

According to the burger chain other top executives will take a 25% pay cut that will run from April 15th through September 30.

McDonald’s is also planning to reduce capital expenditures by $1 billion in 2020.

According to the statement, the same-store sales rose 8.1% for the first two months of 2020, compared with year ago figures. But the coronavirus rapidly spread nationwide in March, causing same-store sales to fall by 13%. The brand said, as a result, it expect Q1 growth of just 0.1% in the US. 

Not only this its operations are significantly affected through limited hours, purchase venue points and even closures in some markets.

The group is closely working with franchisees to continually evaluate operational feasibility, while working with its supply chain network to ensure it has the goods needed to meet its current demand.

"Approximately 75% of our restaurants around the world are operational, the majority of which have adapted to focus on drive-thru, delivery and/or take-away,” added Kempczinski in the filing.

The group has taken important steps to preserve their financial flexibility, including suspending their share repurchase program and increasing their cash position by raising $6.5 billion in the debt markets during the first quarter.

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