McDonald's Reports Third Quarter 2020 Results.

Highlights:

Comparable sales continued to improve globally, driven by positive comparable sales of 4.6% in the U.S.

Diluted earnings per share of $2.35 increased 11%; excluding strategic gains, diluted earnings per share of $2.22 increased 5%

McDonald's will host a virtual Investor Update today, beginning at 8:30 a.m. (Central Time) to share the evolution of its growth strategy and provide an update on strategic priorities

CHICAGO- McDonald's Corporation today announced results for the third quarter ended September 30, 2020.

'The resilience of the McDonald's system was on display during the third quarter as the competitive strength of our business and the 3 D'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.'

Third quarter financial performance:

Global comparable sales declined 2.2%. Monthly comparable sales results improved sequentially for all segments throughout the third quarter.

Consolidated revenues decreased 2% (2% in constant currencies).

Systemwide sales were flat with the prior year (decreased 1% in constant currencies).

Consolidated operating income increased 5% (3% in constant currencies) and included $139 million of strategic gains on the sale of McDonald's Japan stock. Excluding these gains, operating income decreased 1% (2% in constant currencies).

Diluted earnings per share of $2.35 increased 11% (10% in constant currencies). Excluding $0.13 per share of strategic gains related to the sale of McDonald's Japan stock, diluted earnings per share was $2.22 for the quarter, an increase of 5% (4% in constant currencies).

The Company declared a 3% increase in its quarterly cash dividend to $1.29 per share, payable on December 15, 2020.

THIRD QUARTER COMPARABLE SALES

Increase/(Decrease)

Quarters Ended September 30,

2020			2019
U.S.						4.6%			4.8%
International Operated Markets			(4.4)			5.6

International Developmental Licensed

Markets & Corporate				(10.1)			8.1
Total						(2.2)%			5.9%

Comparable Sales: Monthly comparable sales results improved sequentially for all segments throughout the third quarter of 2020.

U.S.: Comparable sales were positive throughout the quarter, benefiting from strong average check growth from larger group orders as well as strong performance at the dinner daypart. The Company's strategic marketing investments and resulting promotional activity drove low double-digit comparable sales for the month of September, including positive comparable sales across all dayparts. Comparable guest counts remained negative for the quarter.

International Operated Markets: Comparable sales results improved throughout the quarter, with consumer sentiment and government regulations impacting the pace of recovery from COVID-19. Limited operations also remained in place for some markets. Comparable sales varied across markets with negative comparable sales in France, Spain, Germany and the U.K., partly offset by positive comparable sales in Australia.

International Developmental Licensed Markets: Comparable sales results were impacted by negative comparable sales in Latin America and China, partly offset by strong positive comparable sales in Japan.

KEY FINANCIAL METRICS - CONSOLIDATED

See more at:

https://corporate.mcdonalds.com/corpmcd/en-us/our-stories/article/press-releases.Q3-2020-earnings.html

(C) 2020 Electronic News Publishing, source ENP Newswire