McDonald’s sales hit hard due to restrictions on Covid-19

McDonald’s sales hit hard due to restrictions on Covid-19

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The company said Thursday that sales in U.S. restaurants had risen 5.5 percent for at least a year in the three months to December 31. The company said the marketing investments, especially investments with core menus such as McNuggets chicken, are bearing fruit.

But as U.S. sales grew, McDonald’s (MCD) international sales have been dragged down by Covid-19 restrictions in Europe. European countries announced lock-in measures in the autumn and during the holidays. Some have expanded it in the new year as a new variant of the coronavirus spreads. Restrictions include evening clocks affecting the operating hours, and restrictions on the dining room, or the closing of the dining room.

To combat the constraints, “we try as much as possible to drive our momentum, delivery, our digital businesses,” CEO Chris Kempczinski said during an analyst interview on earnings.

A customer has her temperature checked while standing in line to enter a McDonald's Corp. restaurant in Milan, Italy, on Monday, May 18, 2020.

Overall, McDonald’s revenue fell about 2% to $ 5.3 billion in the quarter, beating Wall Street’s expectations.

Looking ahead, McDonald’s is focusing on its loyalty program, which will be launched in the United States this year, chicken deals, which include new crispy chicken sandwiches coming to restaurants next month, and value options.

“What we are currently seeing is that the concern about economic uncertainty is by far the biggest … biggest concern that exists among our consumers,” Kempczinski said. “We think affordability is going to be one of the things we all need to focus on in a prudent way in 2021.”

The company offers deals in its app to encourage people to try classics like Big Macs or Egg McMuffins and new products like cinnamon rolls.

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