McDonald's Profit Fell By A Quarter In Q3 2020
The net profit of the fast-food chain McDonald's for the first nine months of 2020 decreased by 25% compared to the same period last year — to $3.353 billion, according to the company's reports.
Diluted earnings per common share for the reporting period decreased to $4.47 from $5.8 a year earlier. The network's operating profit decreased by 24% to $5.181 billion. McDonald's revenue for the reporting period decreased by 13% to $13.894 billion.
At the end of the third quarter, the company's net profit increased by 9.6% to $1.762 billion. Diluted earnings per share were $2.35 compared to $2.11 a year earlier. The network's operating profit increased by 5% to $2.526 billion. Revenue fell 2% to $ 5.418 billion, beating analysts' forecasts of $5.38 billion.
McDonald's global comparable sales declined by 2.2% in the third quarter.
The company's shares are up 5.52% in preliminary trading in the US.
McDonald's was founded in 1940 by brothers Dick and Mac McDonald. The first restaurant opened in San Bernardino (California, USA). In 1948, the company, for the first time in the world, formulated the principles of the concept of "fast food."
“The resilience of the McDonald's system was on display during the third quarter as the competitive strength of our business and the 3D's – Digital, Delivery and Drive Thru – led to significant global comparable sales recovery,” said McDonald's Chief Financial Officer Kevin Ozan. “Our franchisees and restaurant teams around the world remain focused on running great restaurants and continuing to provide a safe environment for customers to enjoy our great tasting food.”