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McDonald’s reported lower than expected earnings

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
McDonald’s lost almost a third of its quarterly revenue due to the pandemic

The fast-food giant, McDonald’s released its Q2 financial report, and the figures didn't look too rosy, as the company missed expectations.  

The net income came in at $483.8 million, representing an EPS of 65 cents, lower than last year’s $1.52 billion, or $1.97 EPS. It missed this year’s 74 cents EPS consensus. 

Revenue was lower than last year’s, but it exceeded analysts’ expectations, coming in at $3.76 billion. Last year it recorded a revenue of $5.41 billion. 

The sales underperformed, missing the 22.8% targeted decline, sinking 23.9%.

The company didn’t provide any further guidance, as the number of infections continues to rise, and it is considering closing around 200 US locations permanently.

After the report, McDonald’s stock price fell by 2.1%. In 2020, the stocks gained 1.8%, while USA30 lost almost 7%. 

Check out other earnings reports on CAPEX.com!

Sources: cnbc.com, marketwatch.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.