McDonald’s reported lower than expected earnings

McDonald’s reported lower than expected earnings

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%.

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Sources: cnbc.com, marketwatch.com


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