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In a press release dated July 28th McDonald’s Corp. (MCD) announced results for the 2nd Quarter of fiscal 2020 ending June 30th.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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Chris Kempczinski CEO |
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2nd Quarter Ending
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June 30th 2020
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June 30th 2019
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Difference (%)
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Revenue:
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$3,761,500
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$5,409,800
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-33.6
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Gross profit Company restaurants:
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$145,300
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$433,300
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-66.5
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Operating income:
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$961,100
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$2,273,900
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-57.7
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Pre-tax Income
Net Income
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$648,700
$483,800
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$2,007,800
$1,516,900
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-67.7
-68.1
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Diluted earnings per share:
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$0.65
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$1.97
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-67.0
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Gross Margin Company restaurants (%)
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9.1
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18.1
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-49.7
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Operating Margin (%)
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25.6
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42.0
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-39.1
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Profit Margin (%)
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12.9
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28.0
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-53.9
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Long-term Debt and lease obligations1:
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$50,782,000
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$34,880,000
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+45.6
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12 Months Trailing:
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Return on Assets (%)
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11.1
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Return on Equity (%)
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-
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Operating Margin (%)
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41.4
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Profit Margin (%)
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28.0
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Total Assets1
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$47,510,800
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$32,811,200
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+44.8
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Market Capitalization
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$145,915,000
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52-Week Range in Share Price: $124.23 to $221.93 50-day Moving average $189.64
Market Close Tuesday 28th post release $196.24 (-2.5 percent)
Forward P/E 35.1 Beta 0.7
The comparative same-store sales in the U.S. declined by 8.7 percent compared to Q2 of FY 2019 (up 5.7 percent). International same-store sales were down 41.4 percent (up 6.6 percent) yielding a total decline of 23.9 percent (up 6.5 percent)
In commenting on results Chris Kempczinski, president and CEO stated, "Throughout our history, McDonald's has demonstrated the strategic foresight necessary to position our business for the future. Our strong drive-thru presence and the investments we have made in delivery and digital over the past few years have served us well through these uncertain times. We saw continued improvement in our results throughout the second quarter as markets reopened around the world," He added "I'm especially proud of the way the McDonald's System continues to provide a safe environment for both customers and crew, building on our 65-year legacy as a responsible and reliable choice for safe food. We are confident that the strong foundation we have built, combined with the unique advantages of our System, position us well to continue operating successfully during this pandemic and emerge even stronger."
Kevin Ozan, CFO commented on the anticipated prolonged impact of COVID-19 on the economy and reduced future spending by consumers on meals outside the home.