Despite its recent decline in sales, McDonald’s Corp (MCD) is still the largest global foodservice chain. Nevertheless, the company expects to return to growth in the next year, as the pandemic effects are lessened and social activity increases.

Due to the COVID-19 pandemic in most countries of the world, the opening hours of food business have reduced traffic to almost zero, which has resulted in McDonald’s reducing its sales year-on-year for several quarters in the row. However, the last quarter, ending in December, saw sustained growth resulting in a 1% YoY decline in like-for-like sales.

For comparison, a decline of 2 % occurred in the third quarter, and a 25% decline occurred in the second quarter. Furthermore, McDonald’s has noted some signs that recovery is coming. More specifically, sales in the company’s main market were marginally up, which was the United States. Thanks to the advent of drive-in sales and home delivery, this happened.

McDonald’s Corp (MCD) is down 20% for the full year and down 9 % for the fourth quarter. It was expected as a result of substantial security expenditures related to COVID-19 and ramping up marketing expenditures and supporting the franchisee. Despite the pandemic, McDonald’s Corporation also invested in expansion, reconstructed selling points, expanded delivery options, etc. Despite a decline of $2 billion, the operating flow was still positive at the end of the year and amounted to $6.3 billion.

The year-on-year growth rate of McDonald’s is likely to be significant in the coming quarters, after a sharp decline in sales in 2020. While the company will have to wait a few years to get back to real growth, it should still surpass the dock level. An indication of such an improvement is the modest growth the company has shown in the last couple of months.

McDonald’s Corporation (MCD) stock rose by 0.04% in extended hours to reach $207.93. The company reported a one-month loss of -1.72%, a three-month loss of 3.27%, and a five-day loss of 2.54%. Based on the stock’s weekly and monthly price variances, we see that the volatility rate stands at 2.34% for the week and 1.82% for the month.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

LEAVE A REPLY

Please enter your comment!
Please enter your name here