McDonald’s: Reports Third Quarter 2020 Comparable Sales

Chicago / IL. (mdc) McDonald’s Corporation announced results for the third quarter ended September 30, 2020. «Our third quarter performance demonstrates the underlying resilience of the McDonald’s brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food,» said McDonald’s President and Chief Executive Officer Chris Kempczinski. «Today’s dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business.»

Third Quarter Comparable Sales

Change in the 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.
  • United States: 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.

Quarterly Cash Dividend

On October 07, 2020, McDonald’s Board of Directors declared a quarterly cash dividend of USD 1.29 per share of common stock payable on December 15, 2020 to shareholders of record at the close of business on December 01, 2020. This represents a 3 percent increase over the Company’s previous quarterly dividend. While current year business results have been impacted by the COVID-19 pandemic, the pace of recovery paired with the Company’s strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business.

McDonald’s has a strong history of returning capital to its shareholders and has raised its dividend for over 40 years consecutively since paying its first dividend in 1976. The new quarterly dividend of USD 1.29 per share is equivalent to USD 5.16 annually.