- March 19, 2020 / 3 min readThe global fast-food giant also said that the “negative financial impact” to its results cannot be reasonably estimated at this time because of the uncertainty of the the duration of the pandemic which has been disrupting the scope of business.
Considering the ongoing uncertainty caused by Coronavirus outbreak, McDonald's in California said it may offer some franchisees rent deferrals as the restaurant shuts.
The global fast-food giant also said that the “negative financial impact” to its results cannot be reasonably estimated at this time because of the uncertainty of the the duration of the pandemic which has been disrupting the scope of business.
McDonald’s is working with franchisees around the globe to support financial liquidity, according to a regulatory filing on Tuesday. Franchisees operate about 90% of McDonald’s restaurants.
In the US the restaurants are operating with only drive-thru, takeout or delivery option with some locations having limited hours.
In its internationally operated markets segment in France and Canada they have limited operations. Some, in Italy and Spain, have closed all restaurants.
Operating hours for locations in the company’s international developmental licensed markets are driven by government regulations. In Japan, the majority of McDonald’s restaurants are open, while 95% of its locations in China are also operating.
McDonald’s long-term forecast for earnings per share growth is in the high-single digits and system wide sales growth in a range of 3% to 5%. The company said in late January it would add about 1,000 net new restaurants globally in 2020 and forecast global capital expenditures of about $2.4 billion.
McDonald’s shares were relatively flat in pre-market trading. The stock, which has a market value of nearly $115 billion, has fallen nearly 25% since the start of the year.
Search for top Restaurant Suppliers in your city